The Canadian Dollar has been continuing to come under pressure recently, and when we compare the currency with the usual benchmark of the US Dollar, it’s hit a 1-month low during today’s trading session.
The US dollar has been strengthening for reasons of its own but at the same time the Loonie (Canadian Dollar) has been weakening. With the Canadian economy being linked quite heavily to commodities the current trade war concerns and on-going discussions are weighing on the CAD’s value. This is because if global trade were to slow down, the Loonie would be particularly affected due to the type of economy it has.
Weak data has also been weighing on the Loonie as data released earlier today showed that Canada’s trade deficit widened to a record level in March. Furthermore, the price of oil could be affected soon as markets are waiting to hear whether there will be further sanctions against Iran. This could impact the commodities value which would result in movement for CAD exchange rates.
Next week there will be data released from Canada covering the amount of new housing starts which is worth keeping an eye out for. This will be released on Tuesday so do register your interest with us if you wish to be updated should there be any major movements.
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 [email protected] and I will endeavour to get back to you as soon as I can.