Sterling 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.

CAD Data this week and BOC decision to drive rates

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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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.