What Is The Current Canadian Dollar Outlook?

What Is The Current Canadian Dollar Outlook?

If you are currently residing in Canada, you might be slightly concerned about the condition of the Canadian dollar. This is often matched up against the US dollar, primarily because they are such significant trading partners. However, it’s not just trade that can impact the value of these currencies. It has to do with global affairs as well. For example, a sharp drop in the price of oil barrels can actually cause the dollar in either country to lose value. Therefore, it’s directly tied to the economy, and how people are spending their money. Let’s look at the current Canadian Dollar Outlook, and what you should be concerned about in regard to the current state of regional and global affairs.

How The American Fed Can Affect The Canadian Dollar

An example of how a simple announcement can wreak havoc with the Canadian dollar is the recent announcement that the Fed is going to make a statement. This was prompted by the Federal Reserve having meetings, during which the percentage rate for loans was to be discussed. Based upon the initial indicators of how that meeting will go, the Canadian dollar fell flat. As you can see, even the idea that things are not going well with the Federal Reserve of the United States can have a major effect on the value of Canadian money. Combine that with other announcements that have been made, and the current state of the economy in regard to trade, and you can see why the value of the Canadian dollar is diminishing.

How Badly Has It Diminished?

To determine the value of the Canadian dollar, it must always be looked at in contrast to another form of currency. Since the US dollar, and the Canadian dollar, are so intricately entwined, it is best to use this type of example. If you were to travel from Canada into the United States with C$1000, this would translate to about $750 in American money. This difference in value was not always the case, but due to problems with trade, or the potential of even worse trade related issues, the Canadian dollar has been adversely affected.

What Can Change The Direction Of Canadian Dollar Value?

There are so many small things that happen that will shift the Canadian dollar to a higher value. For example, if the price of crude oil were to rise a dollar a barrel, you would see a definite rise in the value of Canadian money. The reason for this is that the cost of using oil would go up, which means consumers would pay more money for those products, and therefore the economy would become more robust. Simple things like this are happening every year, but at the time of this writing, crude oil prices are down, trade is down, and this is affecting the value of the Canadian dollar dramatically.

The current Canadian Dollar Outlook may not look as good as it should, but it is certainly not bleak. These are simple shifts based upon worldwide economic changes. As soon its primary trade partner, the United States, begins to become more flexible, this will likely shift the value of the Canadian dollar to something that is more tolerable.