This Canadian Dollar report examines 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 you would have received when buying £200,000 over the last 30 days.
|Currency Pair||% Change||Difference on £200,000|
Yesterday the Pound began to claw back some of the recent losses it has suffered against the CAD in recent weeks, after the price of Crude oil dropped to $51 per barrel. This fall came despite an agreement among the members of OPEC (Organisation of the Petroleum Exporting Countries) last week that they would be continuing their production cuts in to 2018 in an attempt to boost the price of oil. The Canadian economy is heavily reliant on the value of Brent Crude oil as it is the nation’s largest export, so any losses in oil prices tends to have a detrimental effect on the CAD, with investors moving their money in to safer haven currencies instead.
In fact, since the price of oil began to drop last week, we have seen the CAD take significant losses against the Pound, falling by as much as 2% in the space of just a week. In monetary terms that is a difference of almost £3,000 on a purchase of $250,000. At FCD we offer a range of contract types that can help you benefit from these currency fluctuations or protect yourself from potential losses. Getting in touch with your account manager here could help you take advantage of these savings.
Looking further ahead this week and today we have GDP figures from Canada for March, which look set to show a significant improvement on previous figures. During March the price of oil was far more stable than it is currently, at well above $50 per barrel for a sustained period of time.
If GDP data impresses as expected then we could see the CAD recover some of its losses, so anyone buying CAD may be wise to move sooner rather than later to benefit from the current highs. On Friday afternoon there is also import and export data for April. Again, Oil prices were fairly stable in April this year so we could see some solid export figures which would likely boost the CAD further.
Thank you for reading my currency report, if you have any feedback I would be happy to respond personally. Feel free to get in touch here.
The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.
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