The Loonie (Canadian Dollar) has begun the week in strong fashion after gaining on the US Dollar during today’s trading session.
After a few very strong weeks for the Greenback (US Dollar) it’s currently heading for its 4th successive day of losses, with some believing that the bull run for the US Dollar is running out of steam.
One of the main reasons for CAD’s strength apart from benefiting from the weaker Dollar is the stronger oil price. It’s been increasing in value recently for a number of reasons, and its hit a 3 and a half year high. The main reason many believe oil prices are strengthening is because of the U.S. sanctions against Iran which is one of the largest producers.
There are some economists predicting that the Canadian Dollar is likely to fall as the year progresses. There was a surprise drop in employment through April and the housing market is supposedly softening. It has also emerged that there is a bearish bias regarding the Loonie in terms of existing futures bets, and this is something those hoping for a stronger CAD should be aware of.
Friday is expected to be a busy day for CAD exchange rates, with inflation levels being perhaps the main release along with Retail Sales.
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.