Will fears surrounding the Canadian Dollar cause it to drop further? (Joseph Wright)

Sterling remains steady in early trading as details of the Brexit extension are announced

Those of our readers following the Canadian Dollars value will be aware of the potential downsides to the currency’s value should there be amendments to the NAFTA agreement.

Seventy percent of the countries trade is with the US so if US President, Donald Trump does force through amendments to the current North American Free Trade Agreement (NAFTA) like he’s warned, I think there’s a chance we could see the Canadian Dollar drop in value.

There has been some relief for the Loonie over the past week after it emerged that Donald Trump has spared Canada from the metals tariffs that have made headlines since the plans emerged. Trump plans on introducing 25% tariffs on imported steel and 10% tariffs on aluminium. Canada is the largest importer of these materials into the US so there has been a bit of a relief rally since the news broke that it will be spared.

Apart from the Fed Reserve in the US the Bank of Canada is adopting one of the most aggressive monetary policies of the developed world. This leaves the Loonie open to further losses if the bank doesn’t carry out its plans so CAD sellers should be wary of this. Especially as last year Canadian growth was 3% whereas in the final quarter it had slowed to 1.7% meaning that the BoC may amend its monetary policy plans this year.

Later this week there will be the release of Employment data for February, and this will be released at 12.30pm on Thursday. Feel free to get in touch if you wish to plan around this event in case of market movement.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.