The Canadian Dollar is trading at 2.81 against the Saudi Riyal today, the exchange rate has been stagnant over the last year and is forecasted to have a declining tendency moving into 2021.
Down -1.49%, CAD/SAR is expected to reach a high of 2.85 as November approaches.
Canada’s Retail sales MoM sits at 0.4% with a forecast of 1.1%, while the inflation rate MoM is -0.1% with a 0.5% inflation rate YoY. The Canadian market is slowly rebounding with employment rates on the rise, and as the US Presidential elections wrap up there will be more stability for the Canadian dollar moving into FY21.
Saudi Arabia’s stocks were trading lower than usual as losses in sectors such as building and construction, industrial investment and agriculture and food; “falling stocks outnumbered advancing ones on the Saudi Arabia Stock Exchange by 192 to 10.”
Saudi Arabia’s inflation rate as of September was 5.7% and has a 1% interest rate, compared to Canada’s interest rate of 0.25%.
CAD/SAR is predicted to drop 6.658% within the next year meaning the pair may suit traders to have them as a new addition to their portfolios “as trading bullish markets is always a lot easier.”
The currencies are expected to have a better long-term performance once markets begin to recover from the pandemic. The one-year forecast for CAD/SAR expects an exchange rate of 4.51 and a five-year forecast anticipates an exchange rate to reach a high of 14.28 according to Gov Capital.
By Surina Nath