CAD has seen a rough time of late, especially given the ongoing trade discussions. However, recent talks that state that Canada could be involved in a new trade agreement has been goods for CAD.
The new trade agreements talks are looking to replace the North American Trade Agreement. Although the current agreement does incorporate Canada, the country was unsure of where it fitted in with new agreement.
Confidence raised in the market due to Canada’s inclusion, with some believing it could lead to a more viable trade deal from the Trump administration.
The Canadian dollar had risen to 0.36% on Monday, 17th September, meaning that agreement has mean more trust has been placed in CAD.
Mexican Peso Also Saw Highs
As well as CAD seeing a growth, the Mexican peso also appreciated on Monday. This was again attributed to the Trump administration declaring that an agreement had been formed between Mexico and the US.
Emerging market currencies have felt the pinch as trade deals are undertaken, so the fact an agreement is in place saw the Peso trading at 18.6345.
Mexican elections have also been a contributing factor as to why the peso had gained ground, as a change of leadership meant that the talks were made possible in the first place.
GBP/CAD Currency Pairs Fluctuates
There was a lot of to-and-fro in relation to pound sterling forecast, as well as its bearing on the GBP/CAD currency pair. There is still to be an agreement made between the EU and Theresa May as to how imports and exports are dealt with in relation to the Irish border.
Until further currency news is released, it’s unclear how exchange rates will be affected. However, strong retails sales means that the pound sterling forecast isn’t all doom and gloom.