The Canadian dollar has bounced back strongly with good gains across the major currencies including the pound. The Canadian dollar strength has come about after it has been reported that Canada will be largely exempt from the majority of the major changes in the NAFTA agreement which is still being negotiated after many months of uncertainty.
The news is welcome for the Canadian economy knowing that trade will continue in a positive manner and gives some reassurance to the Canadian dollar. Rates for GBP CAD have now fallen from those highs of 1.83 to levels in the 1.78’s at the time of writing creating a much better opportunity for those clients looking to sell Canadian dollars.
The NAFTA news is so welcome that there may be more room in the Canadian dollar rally. Data released yesterday saw a widening in Canada’s trade deficit but the markets shrugged off the numbers on the strength of the positive NAFTA news.
This afternoon sees employment and business confidence numbers released which could create some added volatility for the Loonie. The Bank of Canada will be keeping a close eye on the economic data to try and decide when to next raise interest rates. Any positive numbers will only suggest the Canadian economy can weather further a further rate rise and this too should help the Canadian dollar strengthen.
Clients looking to buy Canadian dollars may now struggle to reach those recent highs we have just encountered and may wish to consider securing sooner rather than later to avoid potential disappointment. The outlook for the Canadian dollar is suddenly looking much brighter and this could prove beneficial for those clients looking to sell Canadian dollars.
For more information on Canadian dollar exchange rates and assistance on making transfers either buying or selling Canadian dollars then please contact me at [email protected]