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||% Change||Difference on £200,000|
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 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.
From start to finish with all contacts you feel like a VIP client even if you are exchanging small amount of currency. Always polite cheerful and give you straight talking advice before making the decision. Daniel Johnson and the team are a pleasure to deal with.
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Daniel Johnson explained clearly and in an easy to understand way what the process would entail before I made the transaction to pay the deposit on an overseas property. The transaction was carried out in an efficient and timely manner and I felt no pressure at any time.