There has been major movement over the course of this year for the GBP/CAD pairing, with the highest levels exceeding 1.83 back in March and the lowest levels in August, of around 1.66, which is only 4 cents from where mid-market levels are currently.
|Currency Pair||% Change in 1 month||Difference on £200,000|
The movement for the GBP/CAD pairing this year has been significant, with a difference of around 17 cents between the highest and lowest points and in monetary terms that means a transfer of £200,000, well-timed back in March could have achieved approximately CAD $30,000 more, than in comparison to the lowest levels only a few months ago.
Much of the Canadian dollar's strength against the GBP this year has been attributed to the rapid increase in the country’s inflation over the last 12 months and the Central Bank's consequent hikes to interest rates, combined with the ongoing pressures on Sterling influenced by Brexit.
This afternoon the Bank of Canada will release the latest data for the Consumer Price Index (CPI), a key indicator of Inflation and retail sales.
Retail sales figures are expected to show an increase from -0.1% to 0.1%, whilst CPI data for October is expected to show a major increase of 0.5% from September.
If the results are as expected, the CAD could see a boost against the GBP, as Canadian inflation continues to rise, but remains within the 1-3% control set by the central bank, which could then influence the decision surrounding a potential further interest rate hike next month.
Therefore, clients looking to purchase CAD in the short term could be wise to plan around the release in order to manage their market exposure.
For more information, please contact your account manager here or contact our trading floor directly on 01494 725 353.
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