Oil fears weighing on Pound to Canadian dollar exchange rates

Yesterday lower Oil prices combined with a stronger pound to present the best time in 6 weeks to buy Canadian dollars with pounds. The economy in Canada is very much dependent on exports of Oil so fluctuations in the price of Oil influence the performance of Pound to Canadian dollar exchange rates. The headline price of Oil Brent Crude has slipped down to $46 / barrel putting pressure on the Canadian currency. The Oil price has slumped 12% in 2 weeks as fears grow over the likelihood of any agreement between the OPEC.

Previously to help boost prices OPEC had suggested plans to limit supply amongst their members. This had helped boost the Oil price to its 2017 high of $56 only a short time ago. Since then the prospect of trying to get the various countries to agree deals has become shaky and with it so has the Canadian dollar.

What is happening next to move Pound to Canadian dollar rates?

Important information today on the Canadian dollar includes Unemployment data this afternoon. Ever since the Oil Sands fires in Alberta this year saw big falls in Oil production investors have been tracking Unemployment to gauge the health of the Canadian economy. Any deviations from the expected figures of 7% on this afternoon’s data may unsettle the Loonie. The US Election is probably the most important event in the short term as the Canadian dollar is so heavily linked to the US economy. With Trump calling into question free trade deals could a Trump Presidency severely weaken the Canadian economy and the dollar?

There is of course also the fallout from these latest political developments in the UK and the next OPEC meeting is at the end of November. This will be important for the Canadian dollar and the price of Oil both of which could be very volatile so please keep in touch with us here for the latest news.

If you have any questions regarding my Canadian dollar report why not email me at jmw@currencies.co.uk and I'll be happy to reply personally.

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