Is now the time to buy Sterling with Canadian Dollars?

Donald Trump’s speech was extremely focused on getting control of the domestic economy and to make America great again and i think this could possibly cause problems for the Canadian Dollar in the months ahead.

The Canadian Dollar is still very strong against the Pound but since last week GBP/CAD rates have been going in an upwards trajectory owing to the Brexit speech made by Theresa May last week. With approximately 75% of Canada’s trade going on with the US and change to international trade between the two neighbours could cause problems.

In his election campaign trump focused on oil and speaking out about how much oil is still to be drilled out of the ground in the US if projects go ahead this could be detrimental to Canada as it is heavily reliant on its oil industry. Indeed, the president of the Canadian Association of Petroleum Producers Tim McMilan said that trump’s speech was a ‘wake-up call’ for Canada and any changes to US policies could cause concerns for the Canadian economy.

Current Prime Minister Justin Trudeau has spoken with a number of his key officials recently to reassure them about trade relations with the US and the issue of the North Atlantic Free Trade Agreement. Previously Trump has said he would scarp the deal and renegotiate which would likely favour the US’s position and another reason why I think we will see problems for the Canadian Dollar going forward.

This week though will be dominated by what happens tomorrow with the Supreme Court ruling and as covered in my previous sections I think this will be positive for Sterling if the vote goes the way of the government.

Therefore, if you have a currency transfer to make involving Canadian Dollars and Sterling make sure you keep in close contact with your account manager on 01494 725 353 who can keep you updated with current events.


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