This Canadian Dollar report will examine the factors that could affect exchange rates in the short term for those looking to transfer funds to CAD. The table below shows the difference you would have received when buying £200,000 at the high compared to the low yesterday. For current live exchange rates click here.

Currency Pair% ChangeDifference on £200,000
GBP/CAD0.4371%CAD $1400
US plays hardball on Car Production

Could we see further Interest Rate hikes from the Bank of Canada?

The Canadian Dollar has strengthened significantly against the pound following the recent interest hike from 0.5% to 0.75%. We have recently seen a rise in Consumer Price Index (CPI) data. CPI measures changes in the price level of a basket of goods and services purchased by households, it is a key measure of inflation.

This was one of the catalysts for the Canadian dollar strengthening over Sterling now GBP/CAD sits in the 1.60s, which is the best levels for Canadian sellers since January. Since May the Canadian Dollar has moved from strength to strength it is not just the terrible state of affairs in the UK which is causing CAD strength.

There could indeed be further interest hikes from the Bank of Canada as growth continues. The expectations of a further rate hikes and higher oil prices definitely bodes well for the Loonie.

GDP data released on Thursday could cause further gains for the Canadian Dollar

Gross Domestic Product (GDP) is a measurement of the total value of all goods and services produced by the country in question. GDP is considered as the broadest measure of Canadian economic activity and health. This release does have the ability to move markets and I would be surprised to see a decline.

If you have to buy Canadian Dollars with Sterling it may be wise to take advantage of current levels as there is little basis for any significant rally at present. Even if you have a long time scale on your trade, sterling weakening against the Canadian Dollar could continue for the foreseeable future you should be considering purchasing as rates sit.

Thank you for reading today’s Canadian Dollar report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than happy to assist you with any of your currency requirements. Feel free to e-mail me at dcj@currencies.co.uk.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.