The GBP/CAD exchange rate has been up and down over the last few weeks with movements from both Sterling and the Loonie causing a rollercoaster ride. The deal agreed by OPEC in 2016 seems to have had a major effect on oil production with the nations so far sticking to the agreement. This has caused Oil to move to a near 16 month high, helping the Canadian Dollar to gain over the past few months.

Sterling trouble helps CAD

Sterling has also been struggling of late with the Brexit cloud firmly hanging over the UK. There could well be sharp drops in the imminent future with Article 50 expected to be happening in the next few months. The Supreme court decision is expected in the next few weeks and it could be decisive to dictate currency movements in the near future.

Quiet Week of Data for CAD but Trump concerns

Tomorrow and next week will be quiet for Canadian data with it likely that external factors will create the market movements. Donald Trump could be soon to have a major effect on the Canadian Economy has he has been keen to introduce a heavy import tax to the US. Canada who’s major trading partner is the US could be one of the biggest losers in Trumps new plans, with huge amounts of bi-lateral trade daily.

Trump’s inauguration is now less than 10 days away and no one expects him to wait around to make changes. There could be instance changes to the markets especially with so many economic circumstances set to change in the very near future.