The outlook for the Canadian Dollar is suddenly looking brighter as the markets feel more optimistic that a deal will be reached between the US, Mexico and Canada as the NAFTA negotiations reach the final stages. The CAD report below discusses the way the agreement on trade is likely to impact exchange rates, the table below shows the difference in return you could have achieved when selling £200,000.00 during the high and low points of trading hours yesterday.

Currency Pair% ChangeDifference on £200,000
GBPCAD1.5%AUD $5140
CAD Strength as Friday Deadline Approaches

The US has recently expressed optimism that a deal can be made and this is welcome news for the Canadian Dollar considering around 75% of Canada’s exports go straight to the US. A deal has almost been agreed between the US and Mexico and it so is just Canada now left to reach agreement although the negotiators have been warned that the US would be prepared to make a deal with Mexico alone unless some ground is given. Canada is widely expected to have to give concessions on dairy, eggs and poultry by allowing the US a greater market share to its domestic market. Canada currently imposes hefty tariffs on dairy from the US which has been a bone of contention in the negotiations with attention drawn to Canada’s supply management framework. The system coordinates production and controls imports to create stable prices for farmers and consumers but is considered protectionist and an annoyance for the US.

If Canada doesn’t budge on milk then Trump is expected to hit Canadian car manufacturers with a 25% tariff which could result in more delays for the deal.

Tomorrow however marks a deadline to come to reach a deal that modernises the 24-year-old agreement and the plan can then go to congress to be ratified. An agreement will almost certainly be a sign of confidence for the Loonie.

If Canada doesn’t budge on milk then Trump is expected to hit Canadian car manufacturers with a 25% tariff which could result in more delays for the deal.

Tomorrow however marks a deadline to come to reach a deal that modernises the 24-year-old agreement and the plan can then go to congress to be ratified. An agreement will almost certainly be a sign of confidence for the Loonie.

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.