A week of losses for the pound seems more and more likely as a series of negative data for sterling and Monday’s Brexit jitters were compounded by the increased sturdiness of oil prices with the Loonie holding firm at 1,65. Sitting comfortably at $55 pb with limited market volatility as the festive season approaches, the Loonie has benefitted from the sustained rise in oil prices, leaving those hoping that the FED’s interest rate forecast could draw even more attention from CAD to the greenback and drive GBP strength as a result, understandably disappointed.
The Pound has seen a gradual drop since the start of the week, slumping by almost 1.2% to 1.65, making a $200,000 CAD transfer just over £2,100 more expensive.
The Canadian government has recently launched an initiative to increase the number of job offerings and loosen its immigration policy to facilitate the entry of French speaking professionals in a bid to increase the country’s number of Francophiles 4% by 2018 and hopefully stimulate the economy long term. With the GDP predicted to rise as a result, this could be a source of long-term Loonie strength to consider.
This afternoon there will be a raft of economic data to consider coming straight out of Canada and given the limited trading levels as we edge closer to Christmas, I expect to see a fair amount of volatility as a result.
The Bank of Canada will publish its latest Consumer price figures to go along with the all-important retail sales statistics from October. These will be seen as great indicators of the country’s ability to steer inflation in the desired direction by investors and could well have a say on Loonie strength going into the festive period. This will be further compounded by the Gross Domestic Product release for October tomorrow afternoon.
Anyone with a short term CAD requirement may benefit from getting touch with their currency broker on 01494 725 353, who can advise them on the implications to consider going forward.
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