The CAD has found plenty of support against Sterling over the past week, hitting 1.7946 at today’s high.
This move back below 1.80 has brought some much needed respite to those clients with upcoming CAD currency positions to execute, having seen the Loonie marooned above this threshold over recent months.
This improvement has come in line with a positive run of economic data, which including March’s employment figures. These confirmed that 32,000 jobs had been added to the Canadian economy last month, keeping the current unemployment rate at 5.8%, which is a record low.
These figures helped drive investor confidence, which may otherwise have been dented following the news that Canada’s economy contracted by 0.1% in January, which suggests that first-quarter growth figures are likely to be underwhelming.
A sharp drop in oil prices and concerns over the NAFTA agreement and global trade has put pressure on the CAD, which has struggled to make any sustainable impact against the Pound and other major currencies so far this year.
Whilst there has been some progress in NAFTA talks recently, it is still unclear what economic restraints the US may put on Canada and what potential knock on effects this could have on the Canadian economy.
This negative feeling was accentuated by President’s Trumps proposed trade tariffs and current internalisation, which has the potential to have devastating effects on the global markets. These will potentially slow global trade, which in turn is likely to hurt commodity based economies such as Canada’s, which relies heavily on its exports.
With so many potentially negative variables to contend with over the coming months, I would be tempted to take advantage of the current spike, for anyone looking to exchange CAD currency positons over the coming weeks.
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 firstname.lastname@example.org to find out all the options available to you ahead of your currency transfer.