The Canadian dollar has been struggling under a series of pressures following the latest news that has seen big fluctuations in the value of the price of Oil and therefore the Canadian dollar. Expectations are high for some important developments at the upcoming OPEC (Organisation Petroleum Exporting Countries) this Friday which has seen big changes in the price of Oil and assets, commodities and currencies connected to it.
The Canadian dollar is also susceptible to comments from Donald Trump regarding the Trade Wars which will also have a direct influence on the Canadian dollar since the Canadian economy is so closely linked to the US economy and also the global economy. Since Canada is a net exporter, i.e. it sells more overseas than it buys from overseas, global events can have a high impact on the performance of the economy and the currency.
Clients looking to trade Canadian dollars into pounds could find some useful news today in the form of the latest Bank of England meeting where we will get the latest view points and sentiments on UK interest rates and also the economic outlook for the UK. The potential for sterling weakness is high since from my perspective there is little reason to be optimistic from the Bank of England’s perspective.
Any escalation of the Trade War scenario will weigh on the Loonie and could see GBPCAD into the higher 1.70’s. Otherwise any struggles from OPEC to import higher quotas and a dovish (soft) Bank of England would see us closer in the lower 1.70’s.
If you have a transfer to consider in the future why not get in touch to discuss your position, please contact me Jonathan Watson on [email protected] to discuss further.