The Canadian dollar has continued along its positive run of form against the pound throughout yesterday, following from a recent run of positive Canadian economic data.
|Currency Pair||% Change (Month)||Difference on £200,000|
On Friday, Retail Sales figures were released and showed a slight improvement compared to the previous reading, improving by 0.1% in April. March’s figure was also increased after a boost in oil sales. To add to this, Canada’s Inflation levels reached 7 month highs just last week.
The Canadian dollar is also benefitting from the US economy’s struggles, after it was suggested that the next move by the Federal Reserve may be a cut to interest rates, pushing investors towards currencies such as the Canadian dollar. The upcoming G20 Summit in Japan this weekend is also having a negative impact on the US dollar, as concerns are mounting that a meeting scheduled between Chinese President Xi Jinping and US President Donald Trump may not go as well as hoped. The escalating trade war is already having an impact on the global economy, and could have severe implications on global trade if the situation isn’t diffused soon.
Canadian Growth figures for April will be released at 13:30 on Friday and are expected to rise from 1.3% to 1.5% year on year, and fall slightly from 0.5% to 0.2% month on month. If these releases are positive, coupled with the strong Inflation figures posted last week, this could provide the Bank of Canada (BoC) with a strong argument towards raising interest rates again in the near future. The Bank of Canada is next due to meet on 10th July for its next Interest Rate decision meeting, and if any positive signals towards a hike in rates are seen, the Canadian Dollar could continue to strengthen. The BoC will also release its Business Outlook survey on Friday which will be closely monitored for further positive signals.
Get in touch with your Account Manager here ahead of these events so that we can help you to plan for your upcoming currency exchange.
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