This Canadian Dollar report will address the factors that could have an effect on CAD exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved when purchasing £200,000.00 at the low and high levels during the past week.
|Currency Pair||% Change||Difference on £200,000|
The Canadian Dollar gained ground during trading yesterday afternoon, following the release of much better than expected Retail Sales figures along with higher than anticipated inflation levels.
Retail Sales came out at 1.5% against expectations of 0.3% which is a vast improvement.
CPI (inflation) figures also came out slightly higher than expected which led to a slight rise in the value of the Canadian Dollar, as it does increase the likelihood of an interest rate hike in Canada which would be seen as positive for the Canadian Dollar.
There are many analysts that believe we will see an interest rate hike in the coming months from the Bank of Canada.
The BoC Governor Poloz recently attempted to dampen down expectations of interest rates being raised by commenting that “there are a lot of things that have to come together before we feel confident that we’re all the way there” when discussion the chances of another hike coming soon.
An interest rate hike is generally seen as positive for the currency concerned and a cut negative.
Only a few months back we had a surprise rate hike in Canada which pushed GBP/CAD exchange rates below 1.60 for a very short period of time.
The market rate is still holding above the 1.70 mark at the time of writing this report so for those looking to move Sterling into Canadian Dollars you are getting roughly CAD 22,000 more than you would have back then which in my view still signals a good time to buy.
The BoC are a central bank that have surprised in the past, so although Poloz has suggested a hike in early 2018 is a doubt that situation may change fairly swiftly and we may see the Canadian Dollar fight back accordingly.
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