Today is seeing the only data release of note as we edge closer to the end of the year. We are now firmly into the quiet period, but one currency, the Canadian Dollar, still has one large hurdle to jump before settling down for the quiet period between Christmas and the New Year. Canadian growth figures for the month of October are set to come out after finally being tallied, and the results are not looking good. Growth is expected to fall to 0% after modest gains of 0.3% in September.
Whilst this is not gigantic by any means, people must remember that markets can sometimes react violently to ‘buzzwords’. What if that growth rate fell down just 0.1%, and all of sudden the Canadian economy contracted that month. Words like potentially recession can be absent mindedly thrown around by pundits and analysts, and in the thin trading arena that characterises the Christmas period, this can cause hefty movements.
The news will be coming out at 1:30 UK time, so there is plenty of time, particularly for Canadian Dollar sellers, to avoid the risk of the news itself and secure your currency at the rates of exchange available now in order to move forward with stability and certainty on your exchange.
The Canadian Dollar is intricately tied to the commodities markets, and more specifically oil prices. Improvements and downturns tend to run parallel to each other.
Oil prices have been very low for some time, but are finally showing signs of life, reaching 3 week highs following the most recent OPEC meeting on November 30th. OPEC, the Organization of Petroleum Exporting Countries, agreed at the meeting to limit production for the first time since 2008.
There is confidence behind the CAD and this will continue to be a background feature next year. Something to keep in mind if you are planning a Canadian Dollar purchase. But the situations will continue to evolve.
News will be continually released on an evolving oil market, so if you have a Dollar requirement, whether buying or selling, I strongly recommend that you detail this to your account manager.
Uncertainty surrounding oil prices coupled with stagnant growth expectations for October, the Canadian Dollar could come under pressure as we head into the New Year. Call our trading floor today on 01494 725 353 if you would like to discuss a Canadian Dollar transfer.
Would not hesitate to use again, Joshua from FCD looked after us very well and we were able to get a good rate of exchange, the whole process was very quick and painless.
This was a faultless service from start to finish. Our contact, Joshua, could not have been more professional and efficient. He guided us excellently through all the stages of transferring money to the UK. Joshua even managed to get us the best exchange rate available at the time, and he did this with a pleasant manner and exceptional politeness.