If you are in the market for buying or selling Canadian dollars you might be in luck. The CAD rose to a near one-week high against the USD yesterday, with current USD/CAD rates sitting 1.31603. Data from reports showed that Canada’s trade deficit narrowed alongside a promising trade deal between the United States and China, which made investors more optimistic.
Current state of the CAD
The Canadian dollar is currently sitting at around 1.319. The currency reached is strongest intraday rate since the end of October on Tuesday. The exports of Canada consist of several commodities like oil which are likely to benefit from a pickup in global growth. This global growth is likely to occur should the US roll back tariffs that have been imposed on Chinese imports as the ongoing trade talks between the two continue. Analysts have reported that Canada’s trade deficit has narrowed to $978-million compared to the previous months $1.24-billion. Imports and exports have also declined.
Potential CAD outlook based on the outcomes of the US-China trade talks
The CAD to GBP exchange rate his holding steady this Tuesday; contributing factors from the ongoing US-China trade talks have inflicted shifts in the currencies due to business investments in Canada which are also holding back the export markets.
However, traders are hopeful as rumours of the US slashing Chinese import tariffs on around $156 billion worth of products may be on the horizon. In doing so the Cad is likely to benefit from a raise in the USD.
CAD to GBP exchange rate shifts
Shifting across the pond, the UK services fail to improve on October’s figures. Subsequently the GBP failed to gain on the Canadian dollar on Tuesday. Experts have described the situation in the UK as businesses are holding off from their investments for happier times, whilst consumers are saving their money in case raising costs negatively impact their daily lives. Companies also seem to be waiting on the government to salvage their current situation before moving forward.
The current situation in the UK is promising for sellers of CAD to GBP as the CAD continues to rise with positive US-China talks but the GBP remains steady or even loses momentum as the volatility of Brexit and investments become more present.
This may be a positive time to buy GBP with CAD, buyers may also keep an eye on the outcome of the US-China trade talks for a chance of a significant CAD rise should the US resolve their talks in a positive manner.
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