This CAD update discusses the reasons behind the current Canadian Dollar weakness and looks at factors that could affect CAD exchange rates this week. In the table below you’ll see high to low GBP/CAD exchange rate movement when exchanging £200,000 to Canadian Dollars during the last 30 days:
|Currency Pair||% Change||Difference on £200,000|
The Pound is now trading at its highest level to buy Canadian Dollars since the start of the month and is now close to its best level seen since the summer. GBP/CAD exchange rates have been challenging the resistance level of 1.70 this month but have not yet been able to make a sustained breakthrough past the psychological barrier.
Crude oil prices are now trading at close to a 2 year high at USD$58 per barrel and as Canada are such a huge oil exporter this would typically help to strengthen the Canadian Dollar. However, the Keystone pipeline which carries 590,000 barrels per day from Alberta to the US was shut down after an oil spillage in South Dakota. Although this has inadvertently pushed up the price of oil, Canada has reduced its output and therefore part of the reason for the recent bout of weakness for the Canadian Dollar versus the Pound.
Canadian Retail Sales are due to be released at 1:30pm today with the expectation of 1% for September. During the course of this year Retail Sales have been slowing down which highlights the problem in the Canadian economy. Indeed, any numbers lower than the expectation could result in further Canadian Dollar weakness.
Therefore, if you’re looking at buying Canadian Dollars with Pounds it may be worth keeping a close eye on the data release as this could send GBP/CAD exchange rates in an upwards direction during the afternoon.
Commodity based currencies including the AUD, NZD and CAD have all been weakening during the last quarter and although the Pound is struggling to make solid gains versus both the Euro and the US Dollar it is moving upwards against these three in particular.
If you’re on the far west coast of Canada and are struggling to get through during working hours it may be worth looking at utilising a Limit Order which allows you to set a pre-determined rate which is automatically triggered if we are able to buy at your desired rate.
For more information on how future data releases could affect Canadian Dollar exchange rates call our trading floor on +44 (0)1494 725 353 or email me at email@example.com.