With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. The table below shows the difference you would have achieved in Canadian Dollars during the high and low points of the past week.

Currency Pair% ChangeDifference on £200,000
GBPCAD1.05%CAD $3580
Demand For Crude Oil Drives CAD

Demand For Crude Oil Drives CAD

The Canadian Dollar has been benefiting this week from Crude Oil. Two weeks ago, a major pipeline in the North Sea shut due to a crack in a section near Aberdeen in Scotland and is expected to regain full function sometime in early January. Earlier this week on Tuesday, Libyan officials announced that export crude oil pipeline had closed due to an explosion and wouldn’t be fixed until early January either.

The weather has also helped crude oil prices too, with the cold snap across Northern America and Canada pushing up natural gas prices to 3-week highs and helping to support crude oil as well.

For now, the demand for oil is helping to support Canadian Dollar prices with the price for crude oil trading at 2 and a half year highs, however I wouldn’t expect this to extend into January as production resumes to normal levels.

If you are buying foreign currency with Canadian Dollars it may well be worth looking at doing this sooner rather than later.

One of the key drivers of a currency’s value is the prospect of an interest rate hike. This past week, rumours of interest rate hikes have been squandered somewhat following weaker than expected growth figures, I would expect rumours to continue to drive the Loony’s value leading up to the interest rate decision, and subsequent monetary policy statement will dictate rates thereafter.

One of the key drivers of a currency’s value is the prospect of an interest rate hike. This past week, rumours of interest rate hikes have been squandered somewhat following weaker than expected growth figures, I would expect rumours to continue to drive the Loony’s value leading up to the interest rate decision, and subsequent monetary policy statement will dictate rates thereafter.

Away from economics, the Canadian Dollar is likely to come under pressure due to the North American Free Trade agreement being discussed on the 23 – 28th January. Leaders from America, Canada and Mexico will unite to discuss future trade agreements. President Trump has already caused the Canadian Dollar to shake following comments that the trade deal in place will be re-written in order to favour Americans, if comments such as these re-appear I would expect the Loony to weaken.

Thank you for reading today’s market report, I'd be more than happy to assist you with any of your currency requirements. Feel free to e-mail me at brf@currencies.co.uk.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. 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.