The talks regarding the North American Free Trade Agreement are continuing to prove tough as little developments appear to be taking place. President Trump has recently indicated that he is prepared to get rid of the treaty and start again as he believes the deal is not good enough for the United States. Should there to be a stall in the talks the recently strong Canadian Dollar could start to lose many of its recent gains.
Due to the Bank of Canada raising interest rates twice last year there is optimism that there could be further hikes this year which should help to strengthen the currency. However, in the short term it is difficult to look past the trade talks, as there will be significant repercussions and costs should there not be an agreement.
Canada’s largest export has also been performing well of late, with oil close to breaking 2 and a half year highs. There has been unrest in oil production across the globe with incidents in Libya and Iran along with the UK slowing production levels. The OPEC nations came to production agreements at the end of last year so 2018 should see the oil price remain stable if not slowly start to increase.
In the short term the Canadian Dollar could be on the receiving end of a certain amount of uncertainty however as we move towards the middle of the year there could be further strength due. In my opinion if you’re looking to purchase Canadian Dollars you may be sensible to do so sooner rather than later.
If you’re looking to exchange currency please feel free to get in touch would might be a suitable method of transfer. I would be happy to share my thoughts with your further to help you formulate a plan to maximise your transfers. Please send me an email briefly stating what you’re looking to do to [email protected] I look forward to hearing from you.