Oil prices are expected to fall following comments from a Saudi Energy Minister on Thursday. Much of the previous strength in prices were caused by sanctions on Iran, outages in libya and Nigeria and thus, an uptake in demand.
Saudi Arabia made the comments to Reuters indicating that they plan to continue current supply, turning their backs on discussions with OPEC, who manage the supply of oil for its oil rich nations.
We could therefore see an uptake in supply, flooding the markets with cheap oil which in turn could see oil prices fall nearer to the $40 a barrel mark.
Will GBPCAD continue to rise?
Brexit continues to be a major concern for the market and investors are scrutinising economic data to understand the bigger picture of the Brexit vote. Whilst data has been relatively positive as recent, Tuesday’s mortgage approvals could put pressure on Sterling.
That being said, I am expecting data to remain positive in the coming weeks, with concerns likely as we approach the start of 2017. Much of the recent data for the UK does not reflect the recent vote to leave the EU and it is likely we wont see the implications until months down the line.
I am expecting GBPCAD rates to move closer to the 1.75 point in the weeks ahead, as long as no further news of Article 50 comes to light.
If you do need to buy Canadian Dollars in the very near future, doing so ahead of the Tuesday’s mortgage approvals could save you.