The Canadian Dollar finds stronger ground this week with the price of Crude oil tipping above $50 a barrel. GBPCAD continues to trend in the lower ranges and will likely continue if the price of oil rises further.
The Pound has fallen against a basket of major currencies over the past few weeks with the looming referendum and the subsequent result causing a mass sell-off of the Pound due to the uncertainty ahead in negotiations with the EU, which could take up to and beyond 2 years. The CAD has been no exception to the rule, with GBP/CAD rates now at their lowest levels in over 2 and a half years, presenting some excellent opportunities for CAD sellers in a period where the CAD had been weakened by a global fall in crude oil prices.
The Canadian economy is heavily reliant on its exports of Brent Crude oil, its largest exports, so Oil prices also have a huge influence over the value of the Canadian Dollar. The Loonie strengthened further still on Friday last week, with Oil prices rising above $50 per barrel and helping the CAD to gain a further 1.2% against Sterling. This capped off an excellent week for the Canadian Dollar, following a spike on Thursday afternoon too after GDP figures for April showed a steady growth following a contraction in March.
Later this week on Wednesday Canada are set to release their export figures for May. Prices of oil rose significantly throughout the course of May, so we could be set to see flattering figures which could boost the value of the CAD even higher. As a result, if you are looking to buy Canadian Dollars this week, I would suggest speaking with one of our specialist currency brokers who can help you best time your transfer. At the end of the week on Friday afternoon sees unemployment figures for June announced at 14:30. As a key indicator to the strength of the economy, these figures have the propensity to create shifts in the market.
With the price of oil rising, those looking to buy Canadian Dollars may wish to do so sooner rather than later. Call our trading floor on 01494 725 353 and get a free quote.
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