The Canadian Dollar’s value is still shifting parallel to a rollercoaster-like oil market. Last week Oil prices rose by 10% in total, this was matched by a 4% decline overnight on Monday heading into Tuesday. The Canadian Dollar fell away slightly from recent gains as a result.
The reason for the decline was a reduction in Chinese imports by 20% last month alone, which caused many to question whether forecasts for future oil demand would overstated, causing oil prices to fall again.
The general trend, however, is upwards. Prices never move in a straight line, and the net gain for oil prices is still 6% over the past two weeks.
Frankly, I’m amazed the election is still not playing a part in Canadian Dollar exchange rates. With polls still very close it seems everyone may be looking to election day before deciding on whether to buy or sell. Personally, I feel most are worried about long-term forecasts for the crude oil industry.
The consensus seems to be that prices will continue to rise over the next few months due to renewed cooperation between companies as well as countries to combat these ruinous prices.
The only currency the Canadian Dollar was up against today was Sterling, following incredibly poor inflation figures, which turned negative for only the second time since 1960. GBP/CAD rates went above 2.0 once more with the oil price slide, yet found themselves at 1.97 at the end of trading today with the sudden news.
Oil prices may continue to slide before any further rises are seen in the short term. Anyone looking to purchase Canadian Dollars, whether with the Pound, Euro or US Dollar, may want to consider a limit order. This is where currency is bought a pre-determined level which you wish to achieve as soon as that rate is hit, even for a few moments. Email me overnight if you would like more information on these tools which are available through currency exchange specialists such as ourselves, and not your high street banks. Our rates of exchange are also guaranteed to yield you a higher return. Joshua Privett – [email protected]