This report will address the factors that are likely to affect exchange rates today if you are buying abroad or making a currency transfer.
It is going to be very hard to forecast the Loonie as the cost of oil is a major influence on the commodity currency. The price of Oil is extremely volatile currently mainly due to the market being oversupplied which caused the recent decade lows seen at the start of the year for the cost of a barrel. The cost of Oil has started to rise of the back of supply disruptions in Libya, Nigeria and Canada meaning some of the oil surplus had been reduced.
However in a rather negative cycle as the price of oil increases so to might the production levels. Companies may start ramping up some of the slowed operations as there are more profits to be made. Ultimately by pumping more oil out the ground there will be an increase in supply, which will essentially cause the price to fall again.
The Canadian Dollar is at the mercy of oil price movements and if this cycle is continued for a significant length of time then the currency could be up and down more often than a salmon heading upstream.
If you are looking to sell Canadian Dollars the current UK Referendum volatility and the recent oil price improvements do present a good window of opportunity. I believe that the GBP/CAD could fall below the 1.80 mark in the coming weeks, which would be the first time since January 2015.
News for the CAD is a little low this week with the only major release coming at the end of the week. The consumer price Index is released on Friday and considering the disruption caused by the wildfires in the last few months this figure could be slightly lower than expected.