The Canadian Dollar has lost value today after a surprise comment from the US’ White House chief economic adviser.
Larry Kudlow is chief economic adviser to the White House so he has a close relationship with US President Donald Trump. Today Kudlow confirmed that Trump wishes to negotiate separate bilateral deals with Mexico and Canada. The reason for the market reaction is due to this coming as a surprise, and also the change it will bring if it goes ahead. The current plan in place covers all three countries, so this would be a change.
Talks surrounding NAFTA (The North American Free Trade Agreement) have been ongoing for a while now, and this approach will resolve the issues faster according to the White House.
The Loonie is likely to continue to come under pressure whilst this drags on, due to the uncertainty is creates for the currency and the Canadian economy.
Perhaps the busiest day for CAD exchange rates will be this Wednesday when a raft of data is released, mostly the health of the import/export sector in Canada. Thursday could also see some movement as the governor of the Bank of Canada will be speaking. Markets could react if he touches on future monetary policy plans, so its worth being aware of this and do feel free to get in touch if you wish to discuss it in further detail.
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 firstname.lastname@example.org and I will endeavour to get back to you as soon as I can.