In recent months the Candadian dollar has been under severe pressure due to the ongoing NAFTA negotiations and in recent weeks the fall in global stock markets. A fall in global stock markets has meant that the price of oil has also fallen which has put pressure on the Canadian dollar as oil is Canada’s most lucrative export.
The Canadian dollar has now lost most of the gains created from the second half of 2017, due to the interest rate hikes from the Bank of Canada, which were a surprise to most. Personally I expect the Canadian dollar will remain under pressure for the time being until the market understands US President Donald Trump’s position surrounding NAFTA.
In regards to interest rates, it’s likely that they will remain on hold at 1.25% for the foreseeable future as the central bank will want to monitor borrowing costs and the strength of the loonie. It’s all well and good that businesses buying goods and services thrive with a strong Canadian dollar however importers struggle with an overvalued Canadian dollar and so does the tourism industry.
Ultimately if you are involved in Canadian dollar transfers, watching how the NAFTA negotiations develop along with analyzing the other currency that you will be converting is your best option.
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