Loading...

Home pages - full list (A-Z)

Canadian Dollar’s Near-Vertical Rally Continues as US-Canada Reach Trade Deal

What started last week as a data and OPEC-driven rally has become something of a rout, with the Canadian dollar battering other currencies again on Monday following news that Canada and the United States, together with Mexico, have finally agreed a trade deal.

#News #CAD #USD
Email share     Facebook     LinkedIn    Twitter
NAFTA Canada-US Trade Deal Canadian Dollar Exchange Rate

The Canadian dollar is soaring following news that Canada and the United States, together with Mexico, have agreed a trade deal.

“Today, Canada and the United States reached an agreement, alongside Mexico, on a new, modernized trade agreement for the 21st century: the United States-Mexico-Canada Agreement (USMCA),” US Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland said in a joint statement.

“USMCA will give our workers, farmers, ranchers and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region. It will strengthen the middle class and create good, well-paying jobs . . . for the nearly half-billion people who call North America home,” the officials said.

In the markets, Monday morning’s gap-and-go put the loonie up 3 percent against the euro in as many days, up nearly 4 percent against the Swiss franc within the same period, and up by an average of 2 percent against the US and Australian dollar currencies. As far as three-day measures go, this is the fastest rate of Canadian dollar appreciation seen in recent years.

In terms of milestones, USD/CAD, the most important of all Canadian dollar exchange rates, struck a four-month low (Canadian dollar high) on Monday as it tumbled into the high C$1.27s. As recently as Thursday, it had been threatening C$1.31. As of writing, a pause in the decline, perhaps only temporary, had the pair trading at C$1.281.

With the mood buoyant, the safety-first Japanese yen fell to a ten-month low and crude oil—a product which Canada exports in great quantities—rallied to a three-month high.

 

Further Reading

 

Disruptors Challenging Australian Banks in Forex Price and Service: ACCC Report

Key Takeaways from the ACCC inquiry into currency conversion services. BestExchangeRates referenced among comparison sites playing an important role in customer awareness of the excessive currency margins charged by banks.

Last update: 1 Oct, 2019

AUD/GBP Between a Rock and a Hard Place – USD Strength

AUD/GBP versus AUD/USD and GBP/USD

Both the Australian dollar and British pound sterling have had a hard time of late caught between the rock of the China/US trade war and the Brexit hard place.

Last update: 27 Aug, 2019

Australia Cuts Interest Rates to Record Low

RBA Australian dollar AUD currency news and forecasts

The RBA has cut Australian interest rates to a record low of 1 percent in an effort to boost inflation. The Australian dollar is slightly stronger following the widely expected decision but is expected to lose 5–7 percent of its value before year-end.

Last update: 14 Aug, 2019

  

Posted to: News

 
 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.
 

Get a Better FX Deal when you Send and Spend Abroad.

 

Do NOT follow this link or you will be banned from the site!