This Canadian Dollar report will address the factors that are likely to affect CAD exchange rates this week if you are looking to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low over the last 30 days:
|Currency Pair||% Change||Difference on £200,000|
Buying the Canadian Dollar has been getting 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. Stronger than expected growth could mean that the Bank of Canada decide to act sooner rather than later and increase interest rates sooner than expected, this in turn would mean further losses for the Pound against CAD exchange rates. The Canadian economy grew at a rate of 0.3% at the end of the second quarter according to data released late on Thursday last week, this was faster than the consensus forecast growth of GDP at 0.1%.
The Bank of Canada (BoC) is expected to raise by 0.25% by the end of October which would take Canada’s interest rate to an impressive 1% if this were to happen. This would be a very strong run of impressive growth for the CAD and after rates were increased last in July a further rate rise between now and the end of October would be very impressive.
On Wednesday this week at 3:00pm we have the interest rate decision from the BoC, this is expected to remain unchanged at 0.75% for the time being, but as we heard on Friday from my colleague Ben Small there is a 41% chance that the BoC do increase interest rates and if we do see this happen expect to see a spike in the value of the CAD. Generally speaking an increase in interest rates is perceived as positive for the currency involved.
For more news on how upcoming data releases could affect a CAD exchange please call our trading floor on 01494 725 353.