Canadian Dollar Outlook Uncertain over Turkey Contagion Fears

The Pound has found some support against the Canadian Dollar after a sizeable decline over this last month. Rates for GBP CAD are now hovering around the 1.67 mark where it has stabilised which could signal the end of the decline and currently the best exchange rates for selling Canadian Dollars.

The Canadian Dollar could be in for a volatile period ahead though with the latest volatility in global markets stemming from Turkey, after the US imposed sanctions on Turkish steel. Due to the fact that Canada has a large commodity based export market the Canadian Dollar could find itself under a new wave of pressure which is already being seen in rates for CAD USD which have fallen.

As investors move out of the commodity currencies due to the perceived higher risk this could see the Canadian Dollar fall lower. The Turkish Central Bank have already set out measures it is prepared to implement due to this bout of volatility and the Lira has crashed immensely highlighting how this story will have much further to go with added global volatility including Canadian Dollar exchange rates.

Brexit has helped see a decline in Sterling and the markets must now await these crucial next few months for an outcome. Reports are emerging that in the event of a no deal Brexit then the Pound could fall by a further 10% across the board including the Canadian Dollar. There are however murmurs that EU leaders rather than the EU commission may now be more involved in the negotiations which could result in the increased likelihood of getting a UK EU deal. This outcome would almost certainly be the best outcome for those clients looking to buy Canadian Dollars with Pounds.

For more information on the Canadian Dollar and how to achieve the best rates of exchange for your transfer then please get in touch with me using [email protected].

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