CAD Exchange Rate on Momentum After OPEC Deal

CAD/USD conversion rate moved higher at the end of last week, as increasing oil prices and a strong unemployment data left the Loonie exchange rate stronger than the U.S. Dollar conversion rate.

CAD converter rate was also capable to grasp its ground in opposition to the Pound currency conversion rate in spite of soft Brexit hopes leaving the UK currency strong. Analysts’ say, the Canadian Dollar exchange rate is on path to see humble profits compared both USD exchange rate and GBP currency rate week-on-week.

The Canadian economy experienced two optimistic news’ last week. The first one was superior than anticipated growth numbers for the third quarter, while the second was a choice by the OPEC producers to slash production to 32.5 million barrels a day.

Crude oil prices jumped almost 14% last week, which provided a massive support to Lonnie currency rate against other currencies. Canadian economy is heavily dependent on crude oil prices, as the country is pumping almost 4.2 million barrels a day. In addition, Russian cooperation has also strengthened analysts’ sentiments.

Saudi Energy Minister Khalid al-Falih hopes to include the non-OPEC members along with OPEC in cutting production.

On the off chance that the rally continues, it ought to be uplifting news for the Canadian economy, which has indicated solid development in the latest quarter helped by solid energy exports.

After the failure of the second quarter because of the Fort McMurray out of control fires, the third quarter yearly development of 3.5% was imperceptibly over the experts’ desires of 3.4%.

“The three-tenths (gain) is setting you up for solid growth in the fourth quarter,” said Paul Ferley, assistant chief economist at Royal Bank of Canada. “It’s going to reduce the prospect of any near-term easing by the Bank of Canada,” reports Reuters.