The Canadian dollar has come under considerable pressure of late which has presented those clients looking to buy Canadian dollars with some much better opportunities to purchase. Canadian dollar exchange rates have fallen largely as a result of the breakdown in the North American Free Trade Agreement (NAFTA) which is creating additional uncertainty for the Canadian economy. US President Donald Trump has
Rates of exchange for GBP CAD are at the highest levels seen since last May with levels sitting above 1.75 for this pair creating an excellent buy opportunity. Clients looking to buy Canadian dollars may wish to consider moving sooner rather than later as the dollar could find support on the back of higher oil prices. Due to Canada’s status as an oil producer and significant exporter it means that any rise in the price of oil has positive impact on the Canadian dollar. Brent crude oil prices have seen an increase which should lend support the Canadian dollar going forward.
Clients with a GBP CAD requirement should pay close attention to events in the UK this week. UK unemployment data released tomorrow could see volatility for the price of the pound whilst UK Gross Domestic Product (GDP) numbers on Thursday could also create some market movement.
There are also a number of data releases from Canada which are likely to impact on the Canadian dollar. Canadian retail sales from December are released on Thursday and should give some idea as to the to the health of the sector. Inflation data for January is released on Friday and any increase here could see the Canadian dollar rally. Any pick up in inflation could see the Canadian dollar move higher as it may tempt the Bank of Canada to raise interest rates further this year. After two interest rate increases last year the central bank could surprise the markets again with another rate increase.
To discuss the Canadian dollar and how these events will impact on your won requirement then please get in touch with me at [email protected]