Rob Harold
Head of Affiliate Partnerships
GBP/CAD exchange rate hits 4-month high
The Canadian Dollar (CAD) has weakened significantly during the last month, this is mainly because of drops in Oil production and the wildfires in Alberta.
Request a quoteThis report discusses factors that are likely to impact the value of the Canadian Dollar.
Slump in Oil Production and EU Referendum News Boosts GBP/CAD
The CAD has weakened dramatically over the past month, with huge cuts in production of Canada’s Oil and following the wildfires that ripped through Alberta. The Canadian economy is heavily reliant on their exports of Crude Oil, therefore this drop in supply has weakened the Loonie dramatically. This, coupled with the chance of a Brexit looking less likely in the EU referendum at the end of June has helped GBP hit a 4-month high against the Loonie, with rates firmly breaching 1.90.
Part of our service here at currencies.co.uk is to help our client’s time their exchange by keeping them informed of all the latest market movements and upcoming events that could impact the currency market. To give clients an idea of how volatile the CAD has been in recent weeks, since the beginning of May, a purchase of $150,000 Canadian Dollars could have cost you as much as £3,750 less if well timed.
Today could be a significant one for the CAD, with the Bank of Canada’s interest rate decision and statement at 2pm. It is estimated that the wildfires will shave off a huge amount of growth in the Canadian economy for the second quarter of this year, so we may hear hints towards a rate cut in Canada in an attempt to boost the economy. If Stephen Poloz does allude to this at all in his statement this afternoon we could see further losses for the Loonie.
For more information on how future data releases could affect your Canadian Dollar exchange, call our currency brokers on 01494 725 353 or email me at rjh@currencies.co.uk.
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