This Canadian Dollar report will examine the factors that could affect exchange rates this week in order to help you stay informed if you need to make a currency transfer. The table below shows the difference in CAD you would have received when buying £200,000 at the high compared to the low this year to date.
|Currency Pair||% Change||Difference on £200,000|
The Pound to Canadian Dollar exchange rate has gained around 2 cents between last weeks close and now.
The reason for the boost can’t be put down to Sterling strength, but instead Loonie weakness as the price of oil has been dented since the events of Hurricane Harvey began.
The Canadian Dollar had been trading at a 4-week high against the US Dollar prior to the slide in oil prices, and it had looked like the Pound to Canadian Dollar rate would break through the 1.60 mark after testing it last week.
Regular readers of our market reports and blogs will be aware that oil is one of Canada’s major exports, so the price of CAD is often dependent on how well oil as a commodity is performing.
It’s surfacing that so far almost 20% of the United States oil refining capacities have been shut down after Hurricane Harvey ripped through Texas over the weekend, which is of course bad news for the likes of Canada.
There will be a chance for the Loonie to re-coup some of its recent losses this Thursday when Canada’s GDP figures for the 2nd Quarter of this year will be released. This figure is due out at 1.30pm with 3.7% expected so like with other releases, a deviation from this figure could result in movement for CAD exchange rates.
Aside from the data due out this week I think that talk of further interest rate hikes is likely to boost the Loonie, as when we compare the Bank of Canada’s bullishness with the Bank of England’s in recent times, I personally think we’re likely to see a rate hike from the BoC rather than the BoE.
Thank you for reading my Canadian Dollar report, if you have any questions about an upcoming transfer and how this might be affected I would be more than happy to discuss this with you – you can contact me with any queries on 01494 725 353 or email me here.
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