Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just 2 weeks affecting Canadian Dollar rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
This afternoon the Bank of Canada will release their latest Interest decision followed by a statement and press conference from Governor Stephen Poloz. Along with the US Federal Reserve the BoC have been one of the more active central banks having seen a rate hike this year.
The rate currently sitting at 1% is only just behind the US rate which has also risen several times this year. However having seen a hike take place there isn’t thought to be any plans for further movements in the near future. Governor Poloz at the last time of hiking earlier this year suggested that any further movement would be built around good economic data and more global certainty as there are no plans currently in place to tighten economic policy.
Poloz did point to March 2018 as being the next time that they may re-visit a hike, but considering the jump this year came as a surprise to some good data may force their hand before that point.
Over the last few months the Canadian Dollar has been one of the strongest currencies barely moving away from the 1.69 level against Sterling. This has been attributed to better economic data in Canada, with less global uncertainty specifically around oil.
The OPEC (Organisation of Petroleum Exploring Countries) nations who have been sticking to their production agreement have managed to settle in the price of oil, massively reducing over-supply and the risk of a price drop. Being Canada’s largest export the price of oil massively dictates the Canadian Dollar and of late this hasn’t been as much of a factor.
Depending tomorrow on how hawkish Governor Stephen Poloz is in his statement, it will directly effect the markets. If there are any hints of a rate hike in the short term the Loonie is almost certain to strengthen. Should you be looking to complete a Canadian Dollar transfer to Sterling you may find yourselves able to trade well in to 1.60’s tomorrow.
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