The recent drop in oil prices has led to weakness for the Canadian Dollar, we have seen oil prices fall in value by $5 per barrel over the past month which is starting to weigh down on the value of the Canadian Dollar.
Canada’s economy does have oil as one of its key exports so any negative move on oil prices can impact both the Canadian economy and lead to weakness for the Canadian Dollar too.
This afternoon at 13:30pm GMT we have the release of Retail Sales figures for Canada and expectations are that figures will remain at 0.2% so any deviation from this may lead to further volatility for Canadian Dollar exchange rates.
Inflation data will also be released tomorrow at 13:30pm with once again expectations of no change from the last Consumer Price index level of 1.2% but both investors and speculators alike will be keenly watching for any changes to this figure, as it may impact on how the Bank of Canada approach any movements on interest rates in the coming months.
NAFTA of course will continue to leave a grey cloud over any major Canadian Dollar improvement until this issue is resolved, as markets move on speculation as well as fact and any uncertainty either economic or political can lead to weakness for a currency, NAFTA kind of brings about both at present.
As an example the Canadian Dollar is down by 4.7% over the past few weeks, which makes buying CAD 200,000 with the Pound almost £10,000 cheaper!
If you are looking to carry out an exchange involving the Canadian Dollar in the near future then it is well worth speaking with me directly. I can help you both in terms of timing your exchange and helping you achieve the best rate when you come to carry it out.
Feel free to get in touch with me, Daniel Wright by emailing [email protected] and I will be more than happy to contact you personally.