Sterling increased in value versus the Canadian dollar on the interbank market this week, in part because the UK and Irish leaders enjoyed a “detailed and construction discussion” around Brexit yesterday. This is in spite of the fact that Canada’s housing market activity has exceeded expectations.
Meanwhile, looking to the foreseeable future, the Canadian dollar could be affected by a range of factors, including the resumption of the USA’s and China’s trade discussions, Canada’s general election, and the Bank of Canada’s and US Federal Reserve’s interest rate decisions.
The Canadian dollar shed value versus its British counterpart this week, even though Canada’s construction industry began building more new housing than forecast.
Canada’s housing starts rose by +221,200 in September, above economists’ predictions for +214,500 new units. Moreover, Canada’s building permits increased by +6.1% in August, easily exceeding forecasts for a -1.0% drop, as well as July’s figure of +3.2%.
This suggests that both Canada’s construction industry and housing market remain in fit form, even though the Bank of Canada’s interest rates remain at 1.75%, higher than many other developed nations.
Looking to the next few days, the value of the Canadian dollar might be influenced first by Canada’s unemployment statistics for September, due this afternoon.
It’s forecast that Canada’s joblessness rate held at 5.7% last month, as the economy created 10,000 new roles, fewer than August’s 81,100 new positions. Any surprises above or below these predictions could affect the loonie dollar.
Elsewhere, the United States and China are scheduled to resume their trade talks shortly, to reach a trade agreement. The discussions could affect the Canadian dollar, both because Canada trades closely with the USA, and because the loonie dollar is a so-called “commodity currency”, vulnerable to global trade flows.
In addition, looking over the next few weeks, the Canadian dollar might be influenced by Canada’s general election, due on October 21st. In part, this is being considered a referendum on PM Justin Trudeau’s leadership.
Moreover, both the USA’s and Canada’s central banks will announce their next interest rate decisions on October 30th. It’s thought that the US Fed may cut to 1.5%-1.75%, though its Canadian counterpart looks likelier to stay on hold at 1.75%.
Absolutely brilliant service, in particular special thanks to Mr Daniel Wright, who literally took care of us throughout the whole process (we are both pensioners)… we entrusted our life savings to him, and don’t regret it one little bit, Daniel was incredible.
Daniel Wright was easy to deal with over the phone and very professional. It made the International transfer very quick and easy. I would definitely use them again and recommend to friends.
Daniel Wright at Foreign Currency Direct came highly recommended to us by a friend and he and the Company have lived up to this recommendation with every transaction they have completed for us.
It’s a tad daunting and scary to change currency with a hitherto unknown company, and I was worried about it beforehand. My fears were unfounded: I can assure you that this firm is genuine and does exactly what they say they will do. Daniel Wright is a pleasure to deal.
The company gave me great confidence. A complete novice, as I am, in moving large amounts of monies around, my wonderful account manager Daniel was calm and precise in explaining the process to me. He was flexible, informative, professional, friendly. If I can recommend him to anyone then I surely will.