The North American Free Trade Agreement (NAFTA) between Mexico, Canada and the US is currently being renegotiated as Trump deems the current deal to be unacceptable. The Canadian Dollar report below discussed the impact this is currently having and is likely to have on CAD, depending on the success of talks between the Prime Minister and President Trump. The table below shows the difference in Canadian Dollars you could have achieved as your return when selling £200,000.00 during the high and low points of trading yesterday.

Currency Pair% ChangeDifference on £200,000
GBP/CAD1.20%CAD$4200

Current relations between Canadian Prime Minister, Justin Trudeau and Trump are very low.

Trump stated the following on Twitter:

PM Justin Trudeau of Canada acted so meek and mild during our @G7 meetings only to give a news conference after I left saying that, “US Tariffs were kind of insulting” and he “will not be pushed around.” Very dishonest & weak. Our Tariffs are in response to his of 270% on dairy!

Current tariffs imposed on Canada have been limited to Steel and Aluminium, but further tariffs could really hurt the Canadian economy.

Canadian officials are currently compiling a list of a wide range of goods and intend to impose retaliatory tariffs on the US.

I am of the opinion this is a trade war Canada cannot win and has the potential to cause Canadian Dollar weakness. There are rumours there is the potential of a Canadian recession.

CAD is one of the very few currencies where we could see Sterling strengthen.

Canadian Economy could suffer if Trump escelates trade war

Canadian Retail Sales and CPI could cause volatility

Canadian Retail Sales is due out today and there is expected to be a fall from 0.6% to 0%. If there is a significant fall it confirms a drop in consumer confidence and could push any potential rate hike from the Bank of Canada (BOC) further down the line.

Canadian Consumer Price Index (CPI) data is also released later today. CPI is a measure of inflation and is key to making a decision on interest rates and can cause movement in Canadian Dollar value. There is expected to be little movement, but if the release does come in away from the consensus we could see movement.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

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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.