Tomorrow OPEC will be back round the table and reform will be on the agenda alongside the sharp rise in oil over the last 12 months. The price of a barrel of brent crude has risen from $50 Dollars a barrel to $73 in 12 months. The Canadian Dollar report below discusses the ways this changing cost impacts commodity based currencies such as CAD. The table below shows the range of exchange rates during the past 30 days, and the potential difference in return you could have achieved depending on the timing of your transfer.
|Currency Pair||% Change||Difference on £200,000|
Furthermore US President Donald Trump put sanctions on Iran back in May and therefore oil prices rose further as fears of an oil shortage materialised. In recent weeks Donald Trump has been urging Saudi Arabia to produce more oil in the upcoming months to counteract the shortage and to hopefully bring the price of oil down. However it was a blow for the President yesterday when Saudi officials announced that there will be little change to the amount of oil exported in July compared to June.
The OPEC discussions have put pressure on the Canadian dollar over the last 12 months as Donald Trump at certain points threatedened to walk away from the deal altogether. Therefore the OPEC meeting has the potential to impact Canadian Dollar exchange rates.
Today at 12.30 Canada are set to release their latest inflation numbers and a rise to 1.4% is expected. Couple this with a slight rise in retail sales tomorrow the Canadian Dollar could finish the week on a high. Furthermore Canadian interest rates were hiked to 1.5% earlier this month; therefore if inflation rises further there is an argument that the Bank of Canada pulled the trigger at the correct time.
Over the last 4 months GBPCAD exchange rates have dropped 10 cents. To put this into monetary value a 200,000 Canadian dollar purchase is now £6,400 more expensive. Looking further ahead it looks like oil prices are going to remain high for the time being and the ongoing uncertainty surrounding Brexit should continue to put pressure on sterling therefore I expect GBPCAD to fluctuate in the lower 1.70s or even break into the high 1.60s.
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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