Canadian Trade Balance Weakens the Loonie

Richard BeaumontWritten by:
Richard Beaumont
T: 01442 892 060

Canadian dollar exchange rates

The Canadian dollar has had a poor start to the week so far, dropping against both sterling and the US dollar.

Over the course of the last 24 hours we have seen USD/CAD move from lows of just above 1.30 to highs of over 1.32. GBP/CAD exchange rates saw a similar pattern with rates moving from 1.85 to highs of around 1.8750. This shows the Canadian dollar is struggling against its counterparts and becoming cheaper to buy, despite uncertainty and on all sides.

Canadian Trade balance weakens the Loonie

Today there have been a couple of important data releases effecting the amount you pay for your currency. The first of which is very important if you are moving in or out of sterling. The UK services PMI data was released and came in at a respectable 53.7 showing mild growth. This is a very good indicator of economic health and can give a good idea of the future direction of the pound. This helped sterling continue on its upward trend.

This afternoon however was the eagerly anticipated Canadian Trade Balance figures. These were forecast to show a greater value of exports that imports, bringing more money into the country. Despite the predictions of a positive 0.9Bn, when the actual number came in at a negative -1.9Bn, so the Canadian dollar started to lose more ground against both the USD and GBP.

GBP/CAD Graph

Canadian Trade Balance

Best exchange rates

If you want a better deal on your currency, don’t just use your high street banks. Our dedicated team of brokers can offer exchange rates often up to 5% better than the high street banks, offering a secure way to send funds abroad. Whether you are paying foreign suppliers, buying your dream home abroad, or just topping up and overseas account, we can help save you money.

We allow you to lock into a rate of exchange for up to two years onto the future so you know exactly what you are getting, regardless of where the exchange rats move. This allows you to budget effectively, within your timescales.

Open a free, no obligations trading facility today or complete the enquiry form and find out how much we could save you. Alternatively, if you just want a free quote on your currency purchase, contact myself directly on the details below.

Richard Beaumont
T: 01442 892 060