The CAD is under pressure this week losing ground against a host of the major , with these losses particularly apparent against both Sterling and the USD.
Wednesday’s interest rate hike by the US FED and what seems like a significant breakthrough in Brexit talks, has certainty had a detrimental effect on the CAD. Investors have been moving their funds away from the Loonie all week, with its value decreasing at a rather alarming rate.
Despite new head of the FED Jerome Powell remaining fairly dovish in terms of further multiple interest rate hikes this year, the on-going uncertainty around NAFTA talks and increased US Duties has led to some serious concerns amongst member of the Bank of Canada (BoC).
Canadian growth forecasts for the remainder of the year have been cut, with the external factors mentioned above cited as the main reason the Canadian economy will see a significant slowdown over the coming months.
This will be a complete reveres to 2017, when their economic progress exceeded most expectations. An improvement in global growth helped to boost Canada’s commodity based economy, which in turn allowed the CAD to make sustainable progress against many of the regularly traded global currencies.
With oil prices fluctuating And unlikely to return to the highs of recent years, this is also likely to have an impact on the CAD over the coming months, who rely heavily on the export of crude oil to the US in particular.
Looking more closely at the current exchange rates and GBP/CAD hit 1.8265 overnight. Despite the CAD finding some support around this threshold, Sterling has gained almost 5 cents in recent weeks.
Despite this impressive run, I am still wary that Brexit talks could turn at any point. We are starting to see progress but with so many unanswered questions regarding the future standing of the UK economy, I still feel that it may be prudent take advantage of the current rates and remove any risk.
If you have an upcoming CAD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
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