Brent Crude Oil and NAFTA progress benefits CAD

Brent Crude Oil and NAFTA progress benefits CAD

GBP/CAD – There are several factors having a significant bearing on GBP/CAD at present, the main one being Brexit. The lack of clarity surrounding Britain’s exit from the EU is anchoring the Pound. Investors are still concerned about the possibility of a “no deal” scenario. Whilst there is still the possibility of a “no deal” I feel it will be very difficult for Sterling to make any significant gains against the Canadian Dollar.

28 notices were released to the UK public yesterday in preparation for a “no deal” scenario which included new information on how travel, mobile roaming and driving would change.

This could be a PR stunt from the UK Government in an attempt to let the EU know a “no deal” is a real possibility, ammunition to barter.

NAFTA – The North American Free Trade Agreement (NAFTA) is currently being renegotiated due Trump’s open discontent at the current deal. Canada has been frozen out of talks recently so it has been welcome news that Canada has offered the US limited access to it’s dairy market which has been a sticking point. This bodes well for talks moving forward and has helped the Canadian Dollar.

One of Canada’s biggest exports is Brent crude oil so price fluctuations do have bearing on Canadian Dollar value. Brent oil hit the highest levels since May this week at $80 a barrel and his been a catalyst for the loonie, this could well continue.

For more information on domestic and global factors that impact the commodity based Loonie, feel free to ask a question using the form below. I’ll be happy to get in touch personally and discuss your requirements.