It seems that CAD rates are continuing to move higher following recent losses. Even news that oil prices had dropped following poor Chinese data wasn’t enough to stop GBP/CAD from falling back into 2.01 for the first time since July.
Previously the Canadian Dollar had been weakening with news coming out of China about a severe slow-down in their manufacturing sector last month – growing at the slowest recorded pace in the last three years. This caused further falls in oil prices as demand for the future had been revised down further off the back of such news. Regular readers of this site will already understand how heavily linked CAD is to the value of oil.
However, CAD received renewed confidence as North American markets opened as this coincided with the release of recent GDP data for the Canadian Economy. Previously this recorded a contraction of -0.2%. This was one of the reasons why the CAD weakened so heavily last month and tested the 2.05 boundary.
However, low oil prices were not enough to stall the Canadian economy. Growth was still recorded at over 0.5% for June alone, and it seems that recent investments into the Canadian manufacturing sector are beginning to pay off. Though the economy still contracted overall by -0.5% overall in the second quarter, this is much lower than the -1% contraction fore casted, which suggests a change in momentum for the economy.
Over the next few months it seems less likely that the CAD will be as affected by oil swings as previously noted, as this greater economic diversification is very visible on the data spread.
We are still at fantastic levels for buying Canadian Dollars, so I recommend that those with Canadian Dollars to buy contact me for a free quote on +441494 787 478. Alternatively, email me on email@example.com for tailored advice on any planned transfer in the future.
Sellers can contact me to discuss a roadmap of how to maximise the value of your Canadian Dollars. The advice would depend on which currency your Canadian Dollars are paired with.