This Canadian Dollar update examines the factors that have the potential to effect your CAD transfer over the coming weeks. The table below shows the difference you would have achieved when buying £200,000 over the past 30 days.
| Currency Pair | % Change | Difference on £200,000 |
|---|---|---|
| GBP/CAD | 4.1% | CAD $13,400 |
GDP in Canada makes buying more expensive
Buying the Canadian Dollar has been getting more and more expensive recently. Rates are now near the lowest seen since the beginning of the year. Over the last 3 months rates have moved almost in a straight line against buyers falling by almost 14 cents or 9%, meaning a £200,000 transfer buys almost $30,000 less.
This loss has been down to a combination of both GBP weakness and CAD strength. Most recently we had the latest update from Canada with regards to their GDP on Friday afternoon. This showed a much bigger improvement than expected at 0.6% over the expected 0.2%. This gain was put down to the oil and gas industry and a significant increase in the export of the raw material which itself accounts for two-thirds of the increase.
It also showed the fastest gain in year-over-year output seen since 2000 and the monthly expansion for May was the seventh in a row, the longest since 2010.
This all points to a stronger economy and is not something that I expect to reverse any time soon, as a result buyers may want to move sooner rather than later to avoid further costs whereas sellers may want to take the longer view.
CAD Data expected to make GBPCAD more expensive
This week we have a number of large economic data releases expected which will impact the value of buying the CAD. On Monday there is Industrial data, on Tuesday Manufacturing PMI, and on Friday very important Import, Export and unemployment data. Generally most expect this data to continue to show an improvement in the Canadian economy and therefore make buying CAD more expensive still. If you are in the market and would like more information or assistance with the trade please get in contact, but I personally expect buyers to get the better levels at the beginning of the week whereas sellers will probably gain from waiting until the end.
Thank you for reading my Canadian Collar report, if you have any questions about an upcoming transfer I will be more than happy to assist. Feel free to get in touch here.
News
A. Mear
UK
Amazing Customer service. Great spot rates & reliable transfers
P. Ward
UK
Excellent service and very efficient and easy process.
C. Meineke
I have used Foreign Currency Direct for many years and always helpful, polite and good rates according to the market. Easy transactions and seamless service