This Canadian Dollar report will address the factors that could have an effect on upcoming transfers 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 month.
|Currency Pair||% Change||Difference on £200,000|
The Pound may have struggled against some currencies since the Brexit vote, with headlines such as the 8-year low vs the Euro last month being one to remember, but Sterling has actually been quietly regaining some of the value lost against certain currencies with the Loonie being a clear case of this.
The rate is now close to the same level it was trading at in the immediate aftermath of the vote, meaning that the Pound to Canadian Dollar rate has recovered a lot more than the GBP/EUR rate which hopefully helps our readers put GBP/CAD into perspective.
Personally, I think Sterling would have recovered further had it not been for the strong performance of oil recently, which is a key export of Canada so therefore a strong oil price often results in CAD strength.
Earlier this week it emerged that Saudi Arabia are planning export cuts which is where the oil strengthening has come from, as less availability usually results in a strengthening of the commodity.
Those with a CAD currency requirement should be aware that the Bank of Canada has risen interest rates recently and housing data has been bullish, and it’s also worth noting that speculators have raised their bullish bets (bets that CAD will strengthen) to the highest level since 2012. This suggests that financial markets expect to see the Loonie gain value as the year progresses, although US President Trumps plans to cancel the NAFTA agreement could be a stumbling block for the Loonie in future.
The only data release out of Canada this week is New Housing Price Index figures for the month and year. This data is due for release at 1.30pm today, with property prices expected to climb 0.3% on a monthly basis.
There are a number of underlying issues that could drive movement between the Pound and Canadian Dollar though so feel free to register your interest if you wish to be alerted to any sudden rate changes. You can get in touch with any queries on 01494 725 353 or email me here.
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