NAFTA discussions cause problems for the Canadian Dollar vs the Pound (Tom Holian)

Canadian Dollar Could Be Shaken up by Coronavirus Impact on the Bank of Canada Outlook

Although Sterling has been struggling during the last fortnight against a number of currencies owing to the political uncertainty caused by the ongoing saga of the Brexit the Pound has remained very strong vs the Canadian Dollar.

The Canadian economy is heavily influenced by what happens with their relationship south of the border and although the US economy is performing very well and oil prices have been rising the Canadian Dollar has still weakened.

The problems with the NAFTA deal are still not yet resolved and this is a major concern for the Canadian economy and therefore the strength of the Canadian Dollar.

Later on this afternoon Canada releases its latest Import and Export data as well as the latest interest rate decision at 3pm.

The Canadian Dollar is trading at its lowest level vs the US Dollar since last summer as talks of a trade war also continue to harm the CAD.

US President Donald Trump wants to update the 1994 agreement and terminate the deal unless changes can be made. With Canada providing as much as 15% of steel that the US brings in to the country as well as approximately 50% of the aluminium, if a tariff is introduced on these two commodities this could cause big problems for the Canadian economy and also the Canadian Dollar.

Whilst all these problems are occurring I think we can easily break past 1.80 on GBPCAD exchange rates which is great news for anyone looking to buy Canadian Dollars with Pounds.

If you have a currency transfer to make and would like to save money when transferring Canadian Dollars compared to using your own bank then feel free to contact me for further information or a free quote.

Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to offer you better exchange rates as well as helping you with the timing of your transfer by keeping you updated.

Email me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk