CAD weakness because of oil prices

The Canadian dollar has lost value against all of the major currencies this week due to the decline in oil prices. Oil has taken a hit following Hurricane Harvey as it is being reported that 20% of oil refineries have been shut down due to the flooding. Regular readers will be aware that oil prices and Canadian dollar exchange rates have a direct correlation. When oil prices fall the Canadian dollar’s value falls and vice versa.

In regards to GBPCAD exchange rates before the flooding it looked like GBPCAD would break through 1.60 however the market has moved away from these levels. Looking further ahead I still believe a shift through 1.60 is likely. By all accounts Brexit negotiations are not going to plan which is causing problems for sterling exchange rates.

Tomorrow Canada are set to release their GDP numbers for the 2nd quarter. The quarterly figure is expected to be released at 3.7% which is the same as previous. If this materialises I expect Canadian dollar exchange rates to remain buoyant at current levels. However any deviation could cause a volatile afternoon.

If you are buying or selling Canadian dollars this week, month or year and I haven’t covered your currency pair I would recommend emailing me with the currency pair (CADUSD, CADGBP, CADAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **