The Canadian dollar remained on the back foot yesterday after a quiet start to this week, owing to the most recent update from the International Monetary Fund (IMF). The IMF has stated that ‘dangerous undercurrents’ are a threat to the global economy. The IMF has also highlighted the issues surrounding the US-China trade war, and suggested that it’s taking its toll on the global economy, with emerging markets impacted especially. There have also been outflows of deposits from emerging markets owing to these concerns, which is another reason the Canadian dollar has weakened recently.
|Currency Pair||% Change in 1 month||Difference on £200,000|
With the Canadian economy being heavily export driven, especially regarding oil, it’s understandable that a slowdown in the global economy would hit the Canadian economy. These fears haven’t manifested into CAD weakness quite to the same extent as with the AUD.
The pound to Aussie dollar rate sits at a 2-year high whereas GBPCAD would need to increase by roughly 5% higher than the current levels to reach the same feat.
The new NAFTA agreement is now in place and it’s been re-named the United States-Mexico-Canada Agreement, or USMCA. CAD exchange rates jumped once the announcement was made; whether they can hold onto these will depend on the health of the global economy.
Oil prices are also at annual highs which has helped CAD, with WTI prices at 4-year highs.
The Canadian housing market will be in focus later this week, with the New Housing Price Index figures due at 13.30pm tomorrow. Expectations are for 0.1% growth although like with yesterday’s Housing Starts data, I’m not expecting to see much movement after the release unless these figures significantly deviate from expectations.
Another potential market mover is the US Jobless Claims along with Inflation data set for release tomorrow at 13.30pm. Canada’s economy is closely linked to the US economy so we could see movement if those figures spring a surprise.
My experience with Foreign Currency Direct has been excellent, and my account Manager Joseph Wright has been First Class. He has provided me with all the information that I needed, in a very clear way, that made it easy to understand.
Successful transfer to France. I have used Foreign Currency Direct several times. Nothing is too much trouble to explain, and when it comes to the actual transfer, it takes place on time without fuss. Never had a problem. Thank you Joseph!
Very efficient and responsive. We had great service from Joe Wright who helped us (patiently and with humour) through our currency purchase and was then able to guide us through the process of sending money to France for our property purchase.
Joseph treated us very professionally as well as friendly, and advised and went beyond his duty. Would recommend and use him again.