Canadian Dollar Strength although NAFTA Uncertainty Remains

The Canadian dollar continues to make gains across most of the major currencies including the pound as the price of oil climbs higher. The price of oil has been climbing higher after tensions escalated in the Middle East following the decision from US President Donald Trump to pull out of the Iran nuclear deal. This geopolitical uncertainty is pushing the price of oil higher and this is so far proving beneficial for the Canadian dollar due to the fact that Canada is a net exporter of oil.

The Canadian dollar is also seeing some support after the US Treasury Secretary Steven Mnuchin stated that the US – China trade was is being put on hold. A breakthrough in these relations was looking unlikely only last week and the positive developments could signal more optimism for the global economy.

This could be seen as positive for the Canadian dollar as any progress on trade for the NAFTA agreement which is still being renegotiated should help the Canadian economy. However this battle could take much more time to hammer out a deal between the US, Mexico and Canada considering the parties haven’t yet reached an agreement in principle. With Mexican elections around the corner it could mean that the earliest any deal can be hammered out is in 2019.

At least Canada has benefited from another 30 day exemption on steel and aluminium tariffs whilst negotiations continue although that exemption only lives until 1st June. There is the prospect of further extensions from the US which could help support the Canadian dollar in what has been an uncertain period. It appears the US is using its leverage and Steven Mnuchin has stated that both sides remain far apart on a deal which could mean more trouble for the loonie.

Rates for GBP CAD have moved much lower to 1.7150 creating an excellent time for selling Canadian dollars for pounds.

For more information on Canadian dollar exchange rates and for assistance in making transfers when either buying or selling Canadian dollars then please get in touch with me at jll@currencies.co.uk

Will the Pound have a positive end to the week against the Canadian Dollar?

In the last few days the Canadian Dollar has improved against the Pound after the Bank of England decided to once again keep interest rates on hold. The split was 7-2 in favour of keeping rates the same which came as no surprise but the real surprise was a huge downgrading of the UK’s growth forecasts for 2018.

Previously in February the forecast for this year was 1.8% but since then the forecast was now been changed to 1.4% and this caused a big sell off for the Pound vs a number of different currencies.

Later today Bank of Canada deputy governor Lawrence Schembri will be taking centre stage as he addresses the market and will offer some insight into what the Bank of Canada may be looking to do with monetary policy in the future.

Tomorrow afternoon brings with it the latest ADP Employment Change but tomorrow will be the biggest day of the week for anyone with a Canadian Dollar transfer to make.

Canadian Retail Sales and the latest Canadian inflation figures are released on Friday and with Retail Sales expected to show a fall I think we could see GBPCAD exchange rates go in an upwards direction towards the end of the week.

Therefore, if you’re in the process of buying Canadian Dollars it may be worth doing so towards the end of this week.

However, don’t underestimate the problems behind the scenes with the current Brexit negotiations as this will ultimately be what dominates Sterling vs the Canadian Dollar in the weeks ahead.

Having worked in the foreign exchange markets since 2003 for one of the UK’s leading currency brokers I am confident of not only being able to save you money on exchange rates but also help you with the timing of your transfer.

For further information or a free quote then email me directly with a brief outline of your requirement and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Canadian Dollar Strength over Uncertainty in Middle East

The Canadian dollar is continuing to make gains across most of the major currencies with a particularly strong improvement against the pound. Rates for GBP CAD have now fallen to 1.7342 creating an excellent opportunity for those clients looking to sell Canadian dollars for pounds. The Canadian dollar has been boosted on the rising price of oil which has stemmed from geopolitical concerns in the Middle East.

US President Donald Trump has pulled out of the Iran nuclear deal which is creating uncertainty in the Middle East as tensions have been rising which in turn has been pushing up the price of oil. Any escalations in tensions could see the price of oil rise further and in my view this is starting to look quite likely. As Canada is a major exporter of oil then this could see the Canadian dollar strengthen further.

The Canadian dollar could have further to rally if progress is made in the ongoing NAFTA negotiations which started last year. Canada has very strong trade ties to the US and there have been concerns that if no agreement is reached this could be negative for the Canadian dollar. This has put pressure on the Canadian dollar in recent months but the outlook is looking brighter on reaching an agreement which is already reflecting in a stronger Canadian dollar. This week could mark a milestone with a series of meetings which could make for headway.

Clients with a GBP CAD requirement should pay close attention to a Brexit cabinet meeting which could drive the pound higher or lower depending on how well the proposed customs arrangements are received by the markets. UK unemployment data and the accompanying wage growth numbers are released today and will be keenly monitored by the Bank of England.

For more information on Canadian dollar exchange rates and how to maximise on the rates of exchange when sending funds then please get in touch with me at jll@currencies.co.uk

Stronger Canadian Dollar as oil price strengthens, will the strong run for oil help CAD recover recent losses?

The Loonie (Canadian Dollar) has begun the week in strong fashion after gaining on the US Dollar during today’s trading session.

After a few very strong weeks for the Greenback (US Dollar) it’s currently heading for its 4th successive day of losses, with some believing that the bull run for the US Dollar is running out of steam.

One of the main reasons for CAD’s strength apart from benefiting from the weaker Dollar is the stronger oil price. It’s been increasing in value recently for a number of reasons, and its hit a 3 and a half year high. The main reason many believe oil prices are strengthening is because of the U.S. sanctions against Iran which is one of the largest producers.

There are some economists predicting that the Canadian Dollar is likely to fall as the year progresses. There was a surprise drop in employment through April and the housing market is supposedly softening. It has also emerged that there is a bearish bias regarding the Loonie in terms of existing futures bets, and this is something those hoping for a stronger CAD should be aware of.

Friday is expected to be a busy day for CAD exchange rates, with inflation levels being perhaps the main release along with Retail Sales.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Oil surge leads to Canadian Dollar strength – CAD gains against most majors

The recent global uncertainty and political tensions surrounding Iran have led to  surge in the price of oil and we saw U.S crude oil futures gain 3% over the course of trading yesterday following the U.S decision to abandon a nuclear deal with Iran.

This news has managed to take away some of the weakness for Canadian Dollar exchange rates and has countered the uncertainty over the NAFTA agreement that has been weakening the Canadian Dollar in recent weeks.

With oil being one of Canada’s major exports oil price movements can impact the price of the Canadian Dollar, a rising oil price is generally seen as positive for the Canadian Dolar and a drop in oil prices can be seen as a negative.

We will no doubt have a lot more to come from this story and I am sure that this will continue to impact the price of the Canadian Dollar in days and weeks to come.

The next key piece of economic data from Canada will be out tomorrow where we will have unemployment rates followed by a speech from the Senior Deputy Governor of the Bank of Canada later in the afternoon, unemployment is currently expected to have remained at 5.8% so any change from those expectations could lead a an afternoon of volatility for the Canadian Dollar. The net change in employment is expected to have slightly dropped from the figure last month.

As mentioned at the top end of this report the main focus in my opinion for the coming week or so will be movements in Iran, further uncertainty could lead to further Canadian Dollar strength and a move to a more peaceful outcome could quite quickly weaken the Canadian Dollar off again.

If you have an exchange to carry out in the near future and you would like us to make you aware of a spike in your favour, or an adverse market movement against you then feel free to contact me, you can email me directly on djw@currencies.co.uk and I will be happy to explain the various tools we have that can help you maximise your rate of exchange.

Canadian Dollar increases in value vs the Pound but for how long?

The Canadian Dollar has improved against the Pound during today’s trading session after some very impressive housing data in the form of Building Permits for March.

The figures came out at 3.1% for March which was a huge improvement to the previous month as well as much better than the expectation and this has really given the Canadian Dollar a big boost vs the Pound.

With the Bank of England due to meet tomorrow afternoon we could be in for a very volatile day for GBPCAD exchange rates and this should be eagerly watched by anyone with a currency transfer to make involving the Pound.

The likelihood is that we’ll see another month with interest rates kept on hold in the UK but it will be interesting to see how many of the nine members will vote for a rate hike.

In previous meetings we have seen a 7-2 split in favour of keeping interest rates on hold so if we see another member changing their mind I think this could potentially give the Pound a boost vs the Canadian Dollar.

Not only do we have the latest monetary policy meeting tomorrow but we also see the latest Industrial and Manufacturing Production data for March as well as the latest set of Trade Balance data for the UK.

We end the week with the latest Unemployment rate in Canada so expect a lot of movement as the week finishes.

Having worked in the foreign exchange markets since 2003 for one of the UK’s leading currency brokers I am able to offer you bank beating exchange rates as well as helping you with the timing of your transfer.

For a free quote then contact me directly by calling 01494787478 and asking for Tom Holian when calling or email me directly with a brief description of your currency requirement and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Canadian Dollar Rallies on Rising Oil Price

The Canadian dollar has been boosted sharply by the sudden rise in the price of oil which has jumped to the highest level since 2014. Prices for American crude reached $70 a barrel yesterday. The looming announcement from US President Donald Trump on whether the US will pull out of the Iran nuclear agreement is now pushing the price of oil higher and the Canadian dollar as a commodity currency is proving to be a beneficiary.

Considering that Canada is an oil producer and a net exporter then a climb in the price of oil is generally seen as positive for the loonie. If sanctions end up being imposed on Iran should the US withdraw from the nuclear agreement then this could push the price of oil further. Those clients looking to sell Canadian dollars are seeing a much stronger currency at the moment and a good opportunity to covert. CAD GBP has moved by almost 10 cents in the last couple of months making it a good time to convert dollars into pounds.

The one big hindrance for the Canadian dollar remains to be the ongoing NAFTA agreements and the uncertainty of future trade tariffs. Already there is a mini trade war happening between the US and China and there are concerns in the financial markets that tensions could escalate further. The Bank of Canada are taking stock of the situation and are maintaining the status quo on interest rates.

The central bank does not want to risk tightening policy by raising interest rates and this uncertainty could keep the Canadian dollar under some pressure. Until clarity over Canada’s future trade with the US and Mexico can be determined the Canadian dollar is unlikely to make material gains beyond these levels.

For more information on the Canadian dollar and how to make the most of any opportunities then please feel free to contact me at jll@currencies.co.uk

Canada weakens to a 1-month low vs the US Dollar, where to next for CAD exchange rates? (Joseph Wright)

The Canadian Dollar has been continuing to come under pressure recently, and when we compare the currency with the usual benchmark of the US Dollar, it’s hit a 1-month low during today’s trading session.

The US dollar has been strengthening for reasons of its own but at the same time the Loonie (Canadian Dollar) has been weakening. With the Canadian economy being linked quite heavily to commodities the current trade war concerns and on-going discussions are weighing on the CAD’s value. This is because if global trade were to slow down, the Loonie would be particularly affected due to the type of economy it has.

Weak data has also been weighing on the Loonie as data released earlier today showed that Canada’s trade deficit widened to a record level in March. Furthermore, the price of oil could be affected soon as markets are waiting to hear whether there will be further sanctions against Iran. This could impact the commodities value which would result in movement for CAD exchange rates.

Next week there will be data released from Canada covering the amount of new housing starts which is worth keeping an eye out for. This will be released on Tuesday so do register your interest with us if you wish to be updated should there be any major movements.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

NAFTA deal still far from sewn up (Daniel Johnson)

 

US threatens non-approval on NAFTA deal if there is no firm proposal  in place in three weeks.

The North American Free Trade Agreement (NAFTA) is currently in the process of being renegotiated. NAFTA is a free trade deal between the Sates, Mexico and Canada. Trump has made very clear he is unhappy with the current deal and has called it “the worst trade deal in history.”

The results of the new negotiations could have huge ramifications fro the Canadian Dollar, the US is Canada’s largest trading partner. If the deal were to fall through CAD would lose significant value and there would be a sustained period of uncertainty as to how trade would progress.

There has been progress made of late. Mexico’s President, Enrique Pena Nieto is very keen to get the deal sewn up before 1st July, the Mexican election for obvious reasons. US trade representative, Robert Lighthizer has warned however if an agreement can’t be reached in the next three weeks the entire deal could collapse as approval from U.S congress could be refused.

Keep a close eye on developments as they unfold, this matter will have significant bearing on trading levels.

If you have a large currency transfer to perform in the coming days, weeks or months then I will be happy to speak to you directly as I will be willing to help you both with trying to time a transaction and getting you the best possible rate when you do come to trade. A small improvement in a rate of exchange can make a significant difference so for the sake of taking a few minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can contact me (Daniel Johnson) on dcj@currencies.co.uk and I will endeavour to get back to you as quickly as possible. Thank you for reading.

CAD Forecast – Canadian GDP Figures Boost the CAD’S Value Further (Matthew Vassallo)

The CAD has found a new lease of life over recent weeks, with another positive move during Tuesday’s trading.

CAD/GBP rates have spiked by around a cent and a half, following the release of today’s attest Gross Domestic Product (GDP) figure.

Canada’s economy has grown by 0.4%, with the official figure coming in above the markets predicted result of 0.3%.

This healthy reading is the culmination of a run of strong economic data, which has helped to boost investor confidence in the Canadian economy over recent weeks.

This positive feeling is in stark contrast to the overall picture just six weeks ago, when the Canadian economy was under a huge amount of pressure due to a number of external variables. These included falling oil prices (one of Canada’s main exports) and a breakdown in NAFTA talks.

This negative feeling was compounded by concerns over the global trade markets due to President Trump’s imposed trade tariffs. Due to Canada being a commodity based economy, any slowdown in global trade inevitably has a negative knock on effect, which in turn was causing investors to sell off their CAD currency positions.

However, with Trumps stance softening on both NAFTA talks and potential trade embargo’s, the CAD has found a new lease of life and this was evident from today’s GDP figures, which are to any economy and ultimately investors risk appetite in a currency.

This has helped to drive the CAD’s value but just as we’ve seen an upturn in its fortunes, the current trend will not last forever.

Those clients with an upcoming CAD currency transfer to execute should be a close eye on the current spike.

If you have an upcoming CAD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.