The Canadian dollar has risen on the back of a much higher Oil price as we hit $80 per barrel yesterday presenting an excellent opportunity for CAD sellers.
The table below shows high to low GBP/CAD rate movement and the difference when exchanging £200,000 to Canadian Dollars in the last week.
|Currency Pair||% Change||Difference on £200,000|
The Canadian economy is largely influenced by the price of Oil since investors buy and sell the CAD according to the oil price rising and falling. Investors use the price of oil to make judgements on the future value of the Canadian economy
Oil has risen for a number of reasons including Donald Trump’s decision on Iran which have caused concern Iran’s 4% of global supplies will be sanctioned, removing them from the main markets. Venezuela has been undergoing a long economic crisis and as one of the major oil producing South American countries has seen its production plummet.
With neither of these situations expected to solve themselves quickly we could see the price of Oil rise further which would only make the Loonie dollar more attractive to hold and increase its value.
Today sees some important economic events to move the Canadian dollar at 13.30. Retail Sales and Inflation are released and will be very closely monitored for the way in which the Canadian economy is performing and to detail just what we might expect in the future from the Bank of Canada.
Interest rates are also a major driver on the Canadian dollar and investors were expecting future hikes in line with their major trading partner, the United States, but, only if certain conditions can be met. These include some further agreement on the NAFTA (North American Free Trade Partnership) deal which deal which Donald Trump has been trying to amend.
Once the Bank of Canada can fully understand what the outcome from the propose rewriting of the deal will mean the Canadian dollar may then well rise even further as it gives a green light for interest rate hikes.
Today could be a very busy day for GBPCAD exchanges so if you have a transfer to make buying or selling be sure to get in touch to discuss with our expert team.
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