This Canadian Dollar report will address the factors that are likely to affect exchange rates in the short term if you are buying abroad or making a currency transfer. We have shown in the below table the difference in CAD you would have achieved when buying £200,000 at the high and low points of the past month.
|Currency Pair||% Change||Difference on £200,000|
The Pound managed to claw back some of its recent losses against the Canadian Dollar just before the weekend, owing mostly to Canadian Dollar weakness.
Despite some positivity surrounding the Pound as Brexit negotiations finally begun last week, it was a weakening Loonie that allowed Sterling sellers to purchase CAD at improving levels as the day progressed.
The weakening price of oil can be attributed to an extent for the Loonies weakening value, as oil is one of Canada’s main exports as covered by my colleague Lewis last Friday.
The main reason however appears the be the dwindling possibility of an interest rate hike, as inflation levels have fallen to the lowest levels seen since 1999.
The reason for the sharp sell-off is because markets had been pricing in a rate rise after deputy governor of the Bank of Canada, Carolyn A. Wilkins gave a positive assessment of the country’s economy and talked up the possibility of a rate hike just last week. This trend isn’t uncommon within the currency markets, and if you would like to discuss it in further detail do feel free to get in touch to build your understanding.
It could be a quiet start to the week for CAD exchange rates as today is a bank holiday in Canada so I’m expecting to see thinner volumes. If you have a currency requirement involving CAD it may be wise to get in touch early this week, as quiet market conditions can be a much less eventful, and therefore less stressful time to make your exchange.
As the week progresses we could see swings within the Loonies value as unemployment data is due out at 1.30pm this Friday which is a key barometer of the country’s economy. If you wish to be kept updated on the data release do feel free to register your interest, and please make us aware of your earliest availability if you’re based in Canada during the day due to the differing time zones.
For more information on how future data releases could affect your CAD requirement, call our trading floor on 01494 725 353 or email me here.
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