Canadian Dollar finally weakens

As polls open and North-American markets finally become concerned about the potential for a change of Prime Minister following the latest poll numbers, the Canadian Dollar has finally weakened after a long-delay.

The rule of thumb on currency markets is for weakness surrounding election for any given currency. The Canadian Dollar has proven that it also follows the same rules, however delayed the result.

GBP/CAD has strengthened a full 1% in 2 hours and USD/CAD and EUR/CAD are following similar patterns.

It is difficult to gauge how far this will stretch, it may depend on exit polls released in the evening which will give indications for the likely result. The polls have suddenly shown a more clear Liberal lead which will should spell a change in Government. This is rarely received well in the currency markets due to potential changes in financial and economic policy. Hence this 11th hour weakening of the Canadian Dollar.

Markets will have closed by the time results and clear exit polls are released, but the results and political reactions overnight will show which direction rates will likely journey throughout the day.

I will write another post before trading opens in the Europe and North America tomorrow with my predictions, as well as highlighting where rates were by close of play today. 

If you have a requirement to buy Canadian Dollars and are looking to take advantage of a specific economic event, I strongly recommend contacting me on jjp@currencies.co.uk so that you can be first to hear the news overnight and we can put a strategy in place for your transfer to ensure you buy at the high of the market. As a currency specialist I can highlight buying opportunities to you and offer much more competitive rates of exchange than your local or high street bank.