Steve Eakins
Director
GBPCAD one of the climbers
Canadian Dollar outlook, what’s the best time to buy CAD?
Request a quoteSterling Canadian exchange rates have been improving of late, something against the trend for the UK. Against most currencies, the Brexit uncertainty has had a negative impact on the Pound weakening its value. In the Sterling CAD situation the problems the other side of the Atlantic have been preserved to have had a larger negative impact on the CAD resulting in the GBPCAD climbing. Rates are a month high and have climbed by over 2.5% in the last few weeks resulting in a well-timed £200,000 transfer securing over CAD $9,250 more. The range of rates from the past month for USD are shown in the table below, demonstrating the difference in US Dollar you could have achieved when buying £200,000.00.
Oil and the future impact on the CAD
The price of Oil, which is one of Canada’s major exports rose ahead of the OPEC meeting this week and is something to be aware of if you have exposure to the CAD. The most likely outcome of this meeting is for production to be increased which would weaken the value of the Canadian economy and therefore the value of the CAD.
NAFTA on the CAD
The country is also in very slow moving talks with its feud with the United States and Mexico as they try to revamp the North America Free trade Agreement (NAFTA). Most are aware that President Trump is rather out spoken and this has intern been a contributing factor on the CAD’s value falling.
Bank of Canada speculation on interest rates
Longer-term speculation is also building on the policy’s in the Bank of Canada (BOC) changing later in the year. The BOC has already hiked interest rates in 2018 and the view seems to be mounting for a further hike in July. The Deputy Governor of the bank Lynn Patterson spoke yesterday afternoon and continued to fuel the speculation saying that the economy was strong enough for a hike but voicing concerns that the NAFTA agreement could be pinnacle for future policy within the bank. Next on the horizon for clients with exposure to the CAD is inflation data and Retail figures released on Friday. Retail figures are expected to show an improvement however, Consumer Price Index is expected to remain relatively unchanged at 1.4%.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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C. Stewart
Malta
First class service as ever from Stephen Eakins. Very quick and superb advice!!
C. Bourke
UK
Excellent service from Stephen Eakins as always. Manages to achieve a high standard of professionalism and efficiency combined with a friendly approach.
D. Hill
France
Sending money to France has been so easy. I was amazed at how simple the process was. Steve Eakins is a pleasure to deal with, no fuss or drama just a great, friendly attitude.