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 you would have received when buying £200,000 at the high compared to the low for the past month.
|Currency Pair||% Change||Difference on £200,000|
The Canadian economy has been performing incredibly well of late, which prompted the Bank of Canada to decide to raise Interest Rates to 1.25% last week.
Canada’s Manufacturing Sales figures released on Friday echoed this positivity, surging to a record high of $55.5 billion in November, with the petroleum and coal industry seeing some of the largest gains.
Consumer incomes are rising and the jobs market is also looking very positive.
However, the Canadian Dollar has been weakening against the Pound since the beginning of the year. One of the main concerns currently is that of the ongoing renegotiation discussions of NAFTA (North American Free Trade Agreement) which are set to be continued this week in Montreal. Donald Trump has threatened to pull out of the agreement, which could be dire for the Canadian economy.
Canadian Prime Minister Justin Trudeau said last week that he is optimistic that Canada, the US and Mexico can strike a deal in which all parties will benefit, however if the talks this week do not go to plan, I would expect the value of the Canadian Dollar to suffer further as a direct result.
However, this weekend’s news of a Government shutdown over in the US could mean that these talks are put on hold, as any new legislation would need to be passed through Senate. While the US Government it shutdown, no major legislation will be able to be agreed, therefore this could push these discussions further back and this uncertainty could continue to put strain on the Canadian Dollar.
Other potential impacts to Canadian Dollar exchange rates this week are Retail Sales figures which are released on Thursday, and Inflation (Consumer Price Index) data on Friday. With so many political and economic factors likely to affect CAD exchange rates, I would recommend any clients with a Canadian Dollar requirement to get in touch so that we can help you to put a plan in place for your future transfer.
Thank you for reading today’s Canadian Dollar report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than happy to assist you with any of your currency requirements feel free to get in touch on 01494 725 353 or email me here.