Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting Canadian Dollar rates when buying £200,000 over the past week:
|Currency Pair||% Change||Difference on £200,000|
The Canadian dollar currently owns the title of the biggest mover against Sterling compared to any other major currency. In fact, the dollar at present is the best performing currency of any G10 or G20 currency. On top of a highly performing economy, the pound is yet to find any support following uncertainty. The economy seems to have cooled and stabilised in the UK for now, however with little clarity over Brexit, there is little reason for the Bank of England to raise interest rates and therefore very little prospect for investors at present.
With little economic data this week, the markets are able to fully digest the surprise interest rate decision last week. However, there is some room for a surprise and the latest set of housing data could provide clients looking to buy CAD with a window of opportunity.
At present the Canadian economy and in particular the housing sector are red hot. House prices have increased annually at a rate of 14%. These are pre-global financial crisis levels.
Yesterday, the housing sector posted slight gains, with 223.2K new housing being built compared to the 222K anticipated. On Thursday, the new housing price index will be realised, however this is not expected to have a large effect.
The main focus this week for the GBPCAD exchange rate will be the interest rate decision and subsequent monetary policy statement. Any negative news could push rates back below 1.60 for Sterling GBPCAD, and with the recent positive surprising news surrounding the Canadian Housing market, I would probably be looking at securing rates now before the GBPCAD rate gets much worse.
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.