Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements on Wednesday affecting GBPCAD rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
The Canadian Dollar could be in for a turbulent year and I think the main cause for concern for the Canadian Dollar seller is the renegotiation of the North American Free Trade Agreement (NAFTA).
Donald Trump is currently very unhappy with the existing agreement and feels it should be much more beneficial to the United States. This does not sit well with Mexico or Canada, both of which are heavily reliant on exports to the States, their primary export partner. I say Trump is not happy, which could be considered an understatement, he has actually threatened to cancel the deal completely.
The consequences of a change in the deal should not be underestimated and could hit the Canadian Dollar severely. I would keep a very close eye on developments if I had a trade involving the Canadian Dollar.
Tomorrow will see a raft of data releases from Canada including International Merchandise Trade, Purchasing Managers Index (PMI) figures and perhaps the most significant, unemployment.
First up is International Merchandise Trade, it represents the difference in the value of its imports and exports of Canadian goods excluding intangibles such as services. It is worth keeping an eye on as Canada's GDP is made up substantially of exports, such as oil and gold. This will also be interesting to see whether the uncertainty surrounding the NAFTA situation influences import-export levels.
Following import-export figures we have unemployment data. Unemployment is a leading indicator for the Canadian economy. There is expected to be a slight rise from 5.9% to 6% from the previous month. If the figure comes in away from expectations expect volatility.
If you are a Canadian Dollar seller and you have to move short to medium term it may be wise to take advantage of current levels considering Trump’s stance on NAFTA.
For more information on how future data releases could affect your Canadian Dollar requirement, call our trading floor on 01494 725 353 or email me here.