The Canadian dollar has found itself under pressure over the last 24 hours due to the fall in oil prices. It has been reported that US fuel inventories have risen despite OPEC ordering a cut in production. For new readers, oil is Canada’s largest export and when oil prices fall so does the currencies value.
In other news, the Federal Reserve’s minutes this week hinted towards an interest rate hike in December, even though some members were worried about the low inflation numbers. Couple this with US oil inventories on the rise this has led to a sell off of Canadian dollars and speculators have moved into the safe haven US dollar.
The pound had a volatile day of trading as Michel Barnier announced that Brexit negotiations had ‘reached a state of deadlock’ which was bad news for any client buying Canadian dollars with sterling. The EU chief negotiator went on to exclaim that trade talks would not go ahead until further progression had been made. However throughout the afternoon the pound started to make gains against the Canadian dollar and rumours are suggesting that the EU will agree to the UK’s two year transition period.
For clients that are converting GBPCAD exchange rates economic data will continue to impact the exchange price that you receive however I expect Brexit negotiations to be the main driver.
If you have an upcoming currency requirement involving the Canadian Dollar, feel free to contact me (Dayle Littlejohn) [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.