The Canadian dollar remains under pressure following a rocky ride talks in the NAFTA talks. The Canadian dollar has a lot to lose if talks break down and the agreement comes to an end. There have been a number of contentious issues not least the sunset clause which has been called for by the US to allow for termination at the end of the agreed period. Clients looking to buy Canadian dollars with pounds are seeing rates well over 1.69 with levels trying to break over 1.70 for the GBP CAD pair.
The Loonie has been supported over the last few months after the interest rate increase from the Bank of Canada although everything is now uncertain with the lack of agreement with NAFTA.
CAD EUR is also slipping lower as on the one hand the Canadian dollar is weakening whilst the Euro has been generally strengthening following better economic data and the European Central Bank tapering programme which has now commenced. Clients looking to buy or sell property in Europe and have a pending requirement would be wise to get in touch to look at the options available and to make the most of exchange rate fluctuations.
The pound has held up very well against the Canadian dollar and that is despite the ongoing Brexit uncertainty. A key date for anyone looking to either buy or sell Canadian dollars for pounds should mark the middle of December as an important period. The next EU summit will be held at this time and should there be any movement to a discussion on future trade then the pound could see a good boost. Any positive news like this should see the pound rally higher against the Canadian dollar. The risk however is that if the deadlock between Britain and the EU cannot be broken then the pound is likely to fall. Clients looking to sell Canadian dollars for pounds could see a good opportunity if there is still not sufficient progress.
To discuss how these events are having a direct impact on Canadian dollar exchange rates please feel free to contact me at [email protected]