Canadian Dollar due for more strength? Are we about to see a breakthrough? (Daniel Wright)

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Oil prices have been particularly volatile of late and this has been impacting the price of the Canadian Dollar. Many analysts are now expecting to see the Canadian Dollar have a good run of form. For the first time in three years the Canadian Dollar is trading higher than it was a year earlier which suggests to me that confidence may be rising.

I feel that we may be starting to see oil and the loonie turning a corner and although we do have a few pieces of potentially shaky economic data out for Canada next week I feel that the Canadian Dollar will be on the charge in August.

Later on next week we do have some growth figures out in Canada which are expected to see a slight fall in output for the Canadian economy which may lead to a little Canadian Dollar weakness but I do not feel it will be long lasting. When an economy is growing this tends to give the associated currency strength and when the economy is losing pace, more often than not its currency weakens off.

If you are in the position where you may need to buy or indeed sell Canadian Dollars in the coming days, weeks or months and you would like to be kept fully up to date with what is going on then feel free to contact me (Daniel Wright) directly. You can email me directly for the latest market information on djw@currencies.co.uk