The following report looks at factors that may impact GBPCAD exchange rates, looking at factors such as oil prices and employment rates.
There has been a bout of poor economic data for the Canadian Dollar recently, with the Bank of Canada’s Business Outlook Survey claiming that businesses there are not forecasting strong sales growth for the remainder of the year. This comes as a result of the oil price shock which hit after the Wildfires in Alberta earlier this year. Trade data has also been negative, as the export activity continued along its downward trend in May, along with Employment which fell in all regions except one.
The worst hit was the Manufacturing sector, where 13,000 jobs were lost, and the Construction sector where 29,000 jobs were lost after a gain in May.
The CAD is a commodity based currency, and Crude Oil prices fell on Monday reaching two month lows, triggered by rising Canadian supplies and a higher US oil rig count on Friday. As more oil is being produced, the price per barrel falls, resulting in pressure on the CAD, weakening against the USD and GBP.
On Wednesday at 4pm the Bank of Canada will announce their latest Interest Rate decision which is expected to remain on hold at 0.5%. Investment banking group Macquairie have forecast that the BoC will not hike rates until well into 2019, revised down from their previous date of Q2 of 2018. However if this is cut, or the BoC hint towards any future rate cuts, we could see further pressure on the CAD. I would strongly advise anyone with a CAD requirement to get in touch with their Broker at Currencies.co.uk who can help to time their transfer to maximise their returns.
So call us today on 01494 725 353 to speak with one of our knowledgeable brokers about a potential currency exchange transfer.
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