The Pound Canadian Dollar exchange has been very changeable of late; this being driven by the changes in Oil, forecasts for the growth in their largest trading partner, the US, UK economic worries and changing polls on the result of the referendum in the UK within the next 2 months. More recently within the last 7 days we have seen rates generally improve. The largest driver of the drivers above has been Barack Obama and his commentary on the future trade agreements that could be in place between the UK and the US if the united Kingdom was to leave the free trade zone of the EU.
Moving forward the list above will continue to have an impact on market prices and change the trend that we will see. Rates however do not move in a straight line and it is normally micro economic data which drives market movement day-by-day. This is what our service is here to help with, educating on these scheduled events, what is expected and therefore when the market may be at the peaks.
Friday is when we have the next lot of such data released. This being the Raw material Price in Canadian – as a large export dependent economy this is important. Industrial Productivity – again very important for the same reasons. Plus finally the Gross Domestic Productivity, this is the most important from the three and all are due for release at 13:30 BST.
The general expectation is for a fall to be seen and therefore CAD weakness to happen on the day. Meaning buying the CAD could become cheaper to buy at the end of this week. Be aware however that as it is the last trading day of the month before the long weekend profit taking will probably be happening due to the large swing in the last 30 days.
If you have a position live and are looking to trade this week make sure to get in contact. If you are a regular reader this is the time to get in contact. Contact myself, Steve Eakins, on [email protected] for a personal response aimed to be most useful in your personal situation.
Look forward to hearing from you and happy trading.