Yesterday morning saw the Loonie strengthen quite significantly against the Pound, with the price per barrel of crude oil rising above $75. The Canadian Dollar report below discusses how the price of commodities impacts currencies like the CAD; the table below displays the difference in return in Canadian Dollars when selling £200,000.00 during the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
In fact, over the course of the past week, the price per barrel has risen by almost $3. With Crude Oil being Canada’s largest export, this could offer a boost to the economy in coming months and is why we have seen the CAD gain.
These CAD gains also come at a time when the Pound is under some significant pressure, with the hotly anticipated Bank of England interest rate decision on Thursday. Later this week looks set to see plenty of volatile as far as GBP exchange rates are concerned and anyone with a Sterling requirement to buy CAD should keep an eye on events this week as they unfold.
There are also opportunities for the CAD to gain against the Pound before Thursday’s big interest rate announcement, with GDP figures from Canada for May expected to show a boost compared with April.
This data is released at 12.30 this afternoon so speak with your account manager here this morning to find out how this data could affect your upcoming currency transfer.
Friday could provide some volatility for the CAD with Import and Export figures for June released at 12.30. Brent Crude prices were fairly volatile throughout June with some steep drops in its value, so this could have a negative impact on Canada’s export figures. One of the key issues holding Canadian trade back at the moment is the breakdown in the NAFTA deal between the US, Mexico and Canada after the US slapped tariffs on Canadian steel and aluminium imports in June.
However the situation here could be set to improve, especially with Trump agreeing new terms with Europe earlier last week and announcing that they were on track for ‘tariff free trade’. It has been suggested this week that the US and Mexico could reach a deal during August, which would pave the way for an agreement with Canada to follow.
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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