Since Trump's announcement that Canada will be exempt from the pending NAFTA agreement changes, CAD has been gaining in strength against most of it major counterparts. The table below shows the difference in CAD you could have achieved when buying £200,000.00 during the high and low points of the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
The Loonie’s consistent rise against its major currency counterparts has continued nicely through to the start of April having already gained 1.5% since the start of the week against the Pound.
Evidently since Trump made it clear Canada’s market will be exempt to the majority of the major changes to the Nafta agreement, appetite for the Canadian dollar seems to have resurfaced.
This was proved during yesterday’s trading as the Loonie maintained its grip over sterling in the low 1.79s, this despite Statistics Canada posting a surprising increase in Canada’s trade deficit, potentially suggesting a slowdown in Canada’s oil exports may begin to weigh on the Loonie. I feel this shows the markets may now have attributed an underlying value to the Canadian dollar that the outlook on the relationship with the US seems to be improving. Those looking to buy Canadian dollars may want to take note, as for me, holding out for levels back above 1.83 in the short term may be a bit too ambitious in this current climate.
Today will provide another test to the Loonie’s resolve. Although trade data will continue to be a driver for the commodity based Canadian Dollar, Key internal economic data will most likely take centre stage as the markets begin to access the likelihood of the Bank of Canada raising rates multiple times throughout 2018 as previously indicated.
As such, there is plenty of scope for the employment and business confidence releases set for early this afternoon to shake up Canadian Dollar exchange rates. At present the rise in employment is likely factored in to current levels, so a drop off could see the Canadian Dollar become cheaper to buy. If you would like to be alerted to the next spike, it may pay to get in touch with your account manager before these releases.
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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