This CAD report will examine the factors that could affect Canadian Dollar exchange rates 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 at the high compared to the low yesterday. For current live exchange rates click here.

Currency Pair% ChangeDifference on £200,000
GBP/CAD1%$3240
CAD gains as Brent Crude rises to $75 per barrel

CAD Supported on Better Outlook

The Canadian Dollar continues to maintain the higher ground after the recent interest rate increase by the Bank of Canada taking levels from 0.5% to 0.75%. Not only this but the Dollar has found additional support this week after manufacturing data impressed the markets with increased manufacturing shipments from Canada signalling a buoyant economy.

Still on a roll the price of oil has also been climbing which is yet another positive for the Dollar. Oil prices rose to a six-week high earlier in the week and spikes likes these are generally good for the Loonie.

If economic data continues to impress then then the Bank of Canada are widely expected to hike interest rates one more time this year which should help give considerable support to the Canadian Dollar going forward.

Canadian Dollar Impact from NAFTA

The Canadian Dollar could see a particularly volatile period in August as it has been announced that the North Atlantic Free Trade Agreement (NAFTA) renegotiation will commence 16th - 20th August. Both Canada and the US recently became embroiled in a trade tussle over Canadian lumber exported to the US. The dispute was resolved by placing tariffs on Canadian exports. Any additional tariffs imposed by the US on Canada could see the Canadian Dollar come under pressure and some sectors such as dairy are expected to come under the spotlight. A tougher deal for Canada could see some difficult times for the Loonie ahead. The process will take time though with trade negotiations expected to be concluded in Spring 2018.

Canadian retail sales numbers for June are released this afternoon and are expected to show a small drop from the previous month. A weak number today could see the Dollar lose some of its recent gains. The other important release is Consumer Price Index inflation numbers from the Bank of Canada which could see additional volatility for the Dollar.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me at jll@currencies.co.uk.

News

Read more articles
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.