The forecasts for future prices of oil are weighing on Canadian Dollar strength at the moment, as although the medium term trend for GBP/CAD has been downward, over the past 5 or so trading days we’ve witnessed a revival in Sterling’s value with the currency gaining around 5 cents.
This improvement for Sterling sellers has fallen in line with the oil price as the two are closely correlated, due to oil being the biggest export of Canada.
The Canadian current deficit is also becoming a major talking point as the provincial government of Alberta suggested that it would increase by as much as CAD $400m due to the wildfires earlier in the year that have heavily impacted oil production.
The deficit expansion coupled with the falling price and forecasts for oil could be the catalysts for a fall in the Canadian Dollars value in future, so anyone holding onto Canadian Dollars in the hope of selling them at higher rates may wish to reconsider as I’m not sure if it will get a whole lot better, and the gains since the Brexit have been substantial with the GBP/CAD pair close to their 3 year low.
There isn’t any major economic releases out of Canada this week but tomorrow will see UK GDP estimates for the second quarter of this year at 9.30am. There could be movement within exchange rates due to this release so keep an eye on markets around that time, and get in touch if you wish to discuss them.
If you would like to discuss an upcoming currency requirement between GBP/CAD, or any other major currencies for that matter, feel free to contact me on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.