The GBPCAD rate has been rather changeable recently. This is down to a number of reasons including China-US tariffs, domestic news both in Canada and the UK, plus lastly the changing price of crude oil, its largest export. As a result, GBPCAD rates have remained very changeable and over the last 14 days have had a high-low range of 5 cents resulting in nearly a $10,000 difference on a £200,000 transfer.
|Currency Pair||% Change in 1 month||Difference on £200,000|
On Friday there were a number of large data releases for Canada. Retail figures were released and showed an increase of 0.2%, ahead of expectation. Inflation, one of the key releases, showed another climb. Consumer Price index came out showing a 2.4% advance year on year, up from 2.2% for the last month. Markets were expecting a figure at 2.2% so this larger expansion pushed the value of the Canadian dollar up.
The reason for the rise was the higher costs in oil and airline tickets. It has however not changed the forecasts for central policy changes from the Bank of Canada (BOC). The reason being that the increase in oil and airline tickets respectively is expected to be a short-term spike, especially following the recent drop in oil price - 10% in the last 7 days and 27% over the last 3 months.
The next meeting held by the BOC will be on the 5th December and no change to interest rates is expected at this meeting. Moving into the New Year, the BOC is expected to reviewing rates once more if oil prices do continue to fall further. The latest GDP figures are released on Friday afternoon and many expect a drop due to the recent drop in Oil. Something to consider if you are looking to buy the CAD as many expect this to make it cheaper as we end the week.
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