The CAD fell to a near two week low against the USD earlier this week, as growing fears over a global trade war continue to put pressure on all the commodity based currencies.
Despite its losses against the greenback, it has found some support against Sterling. Some progress sin NAFTA talks helped to boost investor confidence in the Loonie, rising almost 3 cents against the Pound over the past couple of weeks. Despite this improvement it has yet to make an impact below 1.80, which looks set to become a key resistance level over the coming days.
Whilst those client holding CAD will be disappointed by this week’s trend against the USD, it may be worth taking advantage of the improvements seen against GBP.
There is an expectation that Saudi Arabia will reduce the price of crude oil it send to Asia and this being one of Canada’s main export, could have a negative knock on effect on the CAD’s value.
Looking at the trend on GBP/CAD rates since the turn of the year and even after the recent dip for Sterling, it has still gained approximately 6.5% against the CAD since the turn of the year. This is the equivalent of a £3,600 saving on a 100k GBP/CAD transfer and as such those clients holding Sterling positions will be keen to protect these gains.
Despite the CAD being predominantly affected by external market concerns over a global trade slowdown at present, there is plenty of Canadian data to keep an eye out for over the coming days.
Tomorrow there is the release of the latest import & export figures, which is key to the relative strength of its export driven economy. This is followed on Friday by the latest employment figures, which could also impact the CAD’s value as we head into the weekend.
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.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.