CAD rallies against the US dollar

Pound to Canadian Dollar Drifts Lower as Global Sentiment Improves

Over the last 48 hours the Canadian dollar has been performing well against the US dollar as oil prices have rallied. Oil is Canada’s largest export and the trend is for the Canadian dollar to perform well when oil prices are on the way up. The price of US crude oil has reached $58 a barrel for the first time since July 2015 and if this figure breaks through the $60 mark, I expect the Canadian dollar to continue to strengthen.

In addition the US dollar dropped against most major currencies Wednesday evening as Durable goods orders for October dropped to -1.2% from 2% and the latest Fed minutes seemed slightly more dovish than many had expected, which means an interest rate hike in December isn’t a guarantee.

With Thanks Giving festivities under way, I expect CADUSD exchange rates to remain fairly flat throughout the day, however I wouldn’t be surprised to see the Canadian dollar make further inroads tomorrow against the US dollar. Looking further ahead the interest rate decision for the US on the 13th December could shape CADUSD for the start of 2018 and I am still of the opinion that the Federal Reserve will follow through an interest rates will sit at 1.5% at the start of 2018. For US dollar buyers it may be worth putting a plan in place over the 2-3 weeks.

The currency company I work for enables me to buy and sell Canadian Dollars at rates better than other brokerages and high street banks. If you are buying or selling euros this year feel free to send me the currency pair you are trading (CADUSD, CADEUR, CADGBP) the reason for your trade (company invoice, buying a property) and I will email you with my forecast for the currency pair [email protected]. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn