This Canadian Dollar report will address the factors that could have an effect on exchange rates over the coming weeks. The table below looks at the difference in CAD between the rate you would have achieved when purchasing £200,000.00 at the low and high levels during the past month.
|Currency Pair||% Change||Difference on £200,000|
The Organisation of the Petroleum Exporting Countries yesterday chose to keep caps in place through 2018, which should help oil keep its gains of late. Furthermore, in the talks this past week there has been a focus on how they will exit the cuts as to not shock the market, to avoid any sharp drops. The agreement was originally brought into place as the price of oil plummeted to $30 a barrel, but the price has now almost doubled.
The Canadian Dollar is greatly exposed to the price of Oil as it makes up for over a quarter of exports for Canada. Whilst the announcement yesterday had little effect on CAD moving forward I think if there are further gains for oil, then I would expect to see that reiterated in the value of the Canadian Dollar.
This afternoon the latest GDP Data and Unemployment data will be released. Unemployment is expected to show a slight decrease from November with the rate falling from 6.3% to 6.2%. Whilst the GDP data is set to show growth from -0.1% to 0.1%. The Canadian Central Bank this year has raised interest rates on 2 occasions which puts them in a very small group of countries to do so. Whilst there isn’t expected to be any further interest rates in the short term, Stephen Poloz the Governor of the central bank is waiting on positive data to determine when the next hike should happen.
In short, it’s unlikely that a change will come for some time, however this suggests any movement from the expected data could become far reaching. If you’re looking to purchase Canadian Dollars you have made over $14,280 on a £200,000 transfer in the last 2 weeks. Whilst waiting could potentially bring you further gains, the OPEC agreement and the general uncertainty surrounding Brexit it might be worth capitalising on this latest spike.
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.