Currency - GBP / Canadian Dollar

The strength in the US Dollar hasn’t directly translated into Canadian Dollar strength but there is no doubt that, against the Pound at least, the CAD is doing rather well. The Sterling - Canadian Dollar exchange rate is at the lowest level it has been since September 2011 and , if it breaks this C$1.56 level there is a chance the loonie (as the Canadian Dollar is known) could sprint through to the July low of C$ 1.52. That then would match the low of July 2010 which makes it a very significant and pretty pivotal exchange rate. Commodity markets are very mixed with oil prices higher on the threat of a Nigerian oil workers strike and yet the slowing Chinese economy is weighing on other raw materials. However, the confidence exuding from the US (relative to other economies) is keeping confidence in Canada’s ability to earn from exports at a very elevated level. For that reason, and for the reasons of Sterling weakness, unless something significant changes, it looks like we will test that low of C$1.52 in the days ahead.