Oil reaches an 18 month High
The Canadian Dollar is heavily influenced by oil prices due to Canada’s significant reliance on oil as an export. Oil prices reached an 18 month high today. This is due to a deal between OPEC and other large exporters of oil to cut production coming into action on New Years Day. The oversupply of oil over the last few years has caused a catastrophic drop in oil price.
The Canadian Dollar will no doubt benefit from the deal. If you are converting Sterling to Canadian Dollars you may be thinking it would be wise to trade quickly in case of a further rise Canadian Dollar value due to the oil reduction. However you may wish to take into account those involved in such deals have reneged on their promises before. I would also consider hanging on until the supreme court ruling on the UK government’s vote on article 50. There is the strong possibility the ruling will go in favour of the government getting the vote and this may outweigh any Canadian Dollar gains.
Key Data Releases this Week
If you have a trade involving the Canadian Dollar keep a close eye on data releases on Friday. We will see import and export data, unemployment data along with PMI figures. Purchase Managers Index data can be considered important due to it giving an insight into Canada’s overall economic situation. I think unemployment figures will be more important however. I think there is the chance of a rise in unemployment and the Canadian dollar could drop in value as a result.
If you are looking to perform a currency trade I would be happy to assist. Banks often give a far worse rate of exchange than a trusted brokerage. I would expect to undercut their rates of exchange by between 2-4%. I will also provide an individual trading strategy to suit your needs. Feel free to contact me at email@example.com if you would like my assistance.