The Canadian Dollar has once again come under pressure against the Pound as the three countries involved in the NAFTA negotiations are not close to a deal yet.
US Congress appears to be running out of time at the moment in order to approve a new deal and with the Mexican election just over 3 weeks away I think it will be difficult to get things organised in the short term and this uncertainty is causing a problem for the Canadian Dollar.
According to one source Trump is considering separate talks with Mexico and Canada but the problem is that if Mexico and Canada do not work together then this could reduce their negotiating power together with the US.
There are still a lot of differences between what the three countries want to try and achieve and with time running out in order for Congress to approve the deal this may carry on until 2019.
The uncertainty surrounding trade is not boding well for Canada and although oil prices have risen recently which has helped the CAD the problem of NAFTA if is it left to drag on could seriously harm the future of the Canadian Dollar vs Sterling.
Turning the focus back to the UK, on Friday we have the latest release from the NIESR which will measure GDP for the last three months.
This indicator, although not the official release, is usually very accurate and if we see another poor performance for GDP then this could cause the Pound to wobble and with Canadian unemployment due on Friday afternoon at 130pm we could have a busy end to the week for GBPCAD exchange rates.
If you have a currency transfer to make and would like to save money when buying or selling Canadian Dollar then contact me directly for a free quote and I look forward to hearing from you.
Tom Holian [email protected]