This Canadian Dollar report will address the factors that could have an effect on exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved when purchasing CAD at the low and high levels during the past week.
|Currency Pair||% Change||Difference on £200,000|
Twice a year, the Bank of Canada release a report outlining the stability of the economy. This is almost a list of pro’s and con’s that the Bank of Canada release and what they will do to solve any issues. The main concern raised from the report was the housing market and the quality of the Bank of Canada’s lending, both of which would benefit from higher interest rates. Governor of the Bank of Canada Stephen Poloz says that whilst the Canadian economy has become more stable through increasing growth and job creation, outside risks remain from the global economy.
Any clients with a longer term Canadian Dollar requirement may want to take note – the last financial stability report that was released in the first half of the year was of a similar tone, with risks easing and the stability of the economy improving it was able to allow the Bank of Canada to raise interest rates in July and September, could this be the case in their next meeting in December?
The Canadian Dollar remains at the mercy of external factors until tomorrow, when Gross Domestic Product figures and employment figures give an indication into whether Governor of the Bank of Canada’s Stephen Poloz was correct in the financial stability report. Citing stronger job creation and economy growth, tomorrow is key as to whether the Bank of Canada will raise interest rates, so anything unexpected could create volatility.
Until tomorrow, the Canadian Dollar is likely to be on the receiving end of any shocks. After the recent spike to over $60 per barrel for crude oil, prices seem to have levelled out and as a result the Canadian Dollar has fallen. There is also a slight concern that the OPEC (Organisation of Petroleum Exporting Countries) countries are yet to agree their latest production details, if there isn’t an agreement then the Oil price could start to struggle and could push the GBP/CAD up towards 1.80.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353.