The Loonie dollar has been quite volatile lately as the price of Oil is volatile ahead of the OPEC (Organisation of Petroleum Exporting Countries) meeting on Friday. With the Russians and Saudis looking for a hike in output there is a concern that the price of oil may come down which would see the Loonie dollar lose value.
In recent weeks there have been many analysts predicting a rise in the price of Oil but this potential new would actually see the price of oil fall. Clients buying or selling Canadian dollars would be very well placed to be making plans ahead of the OPEC meeting, other points they must also consider are the potential swings on the currency from the Trade Wars.
Donald Trump has proven once again he can move financial markets with his rhetoric over trade tariffs on China, we have seen the Canadian dollar losing value on some of this news as markets debate the fallout from this situation. Expectations would be that any escalation of issues would weigh on the Canadian dollar since Canada does a huge amount of business with the US and relies on its very strong exports of commodities including lumber and oil.
Clients looking to buy or sell GBPCAD pairing would do well to focus on the news we are getting from the Bank of England on Thursday regarding interest rates. Whilst the Bank are unlikely to change any policy we could be looking at some changes in the longer term outlook on interest rates. Personally, I would suggest clients are very aware we could see the pound falling if the Bank of England is not too upbeat.
If you wish to learn more please contact me Jonathan Watson by emailing [email protected]