The Canadian Dollar claws back recent losses after the wildfires in Alberta, oil prices are rising and demand is higher due to outages in Libya and Nigeria.
The Canadian dollar lost around 6 cents against Sterling since the devastating wildfires took place in Alberta. However at the end of last week the oil production plants that were badly affected have started once again producing oil. The Loonie could potentially gain back some of the lost ground in the coming weeks as the price of oil is rapidly increasing due to low production in Libya and Nigeria along with Canadian disruption.
On Monday the Bank of Canada will provide their report on the current economy, then moving towards Friday there is Retail figures and the Consumer Price Index. Possibly more significantly for the CAD is the Crude Oil stock changes in the US on Thursday. Last week this figure came back 3.5million less than expected causing a boost for commodity currencies as the surplus decreased. If there was to be similar reductions in the amount of oil being stockpiled I believe we could see the GBP/CAD rate drop back towards the 1.83’s as seen at the start of May.
Given that CAD is a commodity currency focused around oil, there is a strong possibility that the currency will strengthen in the weeks to come. We would therefore strongly suggest that you get in touch with us sooner rather than later to discuss any CAD buying requirements. Call our trading floor on 01494 725 353 or email me here to discuss your requirements.