The Canadian Dollar starts the month on a poor footing following a month where oil prices reached new highs, only to be erased in the latter half of October.
The Canadian Dollar still had a net-gain against the Euro and Pound Sterling last month and finished relatively level with the USD, butt the initial gains proved to be only a short-term phenomenon.
Many had hoped the recent rally for oil was going to be sustained. Leaders for oil exporting nations as well as major multinationals were beginning to work together to bring down production in an effort to increase the price of oil.
However, while this was going on it was confirmed just how much additional supply was being contributed through the lifting of sanctions on Iran. This, coupled with a rise in stockpiles in the US, suggested to markets that supply will continue to outweigh demand. So even though inroads have been made, the Canadian Dollar came under further pressure parallel to the fall in prices.
The Canadian Dollar could have slid further on the markets during the Canadian Election. However, the surprise majority for the Liberals, rather than the messy minority government that many were predicting, was enough to bolster confidence in the Canadian Dollar moving forward. A majority government is better equipped to quickly tackle economic issues facing Canada currently.
The first few weeks of the month are normally the most volatile of the month for any currency with data releases detailing the performance of the economy in the previous month. Import and export data to be released tomorrow for Canada will set the tone for the month moving forward in November. Significant volatility on Canadian Dollar rates will likely result.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. We can also discuss a strategy for your transfer depending on the positive or negative nature of the data to be released tomorrow. Tom Holian email@example.com