Inflationary figures will be released today with expectations for positive growth from 0.2% to 0.3%, this could see positive strength for CAD bringing GBPCAD levels nearer the 1.80 resistance level.

Inflation could bring Canadian Dollar back on track to dip below 1.80

The Canadian Dollar has flirted with the 1.8 mark a few times now, but has failed to breach that resistance level which has been in place for 18 months. A slightly stronger Pound over the past few days has halted this rally on CAD/GBP, but the tables may turn once more this afternoon.

Canadian inflation data is set to come out this afternoon, and expectations are for a rise in prices now that they have all been tallied from May, compared to April this year. The improvement is set to be marginal, from 0.2% to 0.3%, but in a world filled with unhealthy inflation numbers, any improvement is normally received with excessive positivity.

The expectations for the rise are likely being priced in due to the wildfires which inhibited oil production. It’s estimated that 30 million barrels - $1.4bn worth – was lost from the economy. This was part of the reason why 1.90+ suddenly re-emerged on Canadian Dollar buying rates. But this reduced supply on oil is expected to allow prices to rise, which may have a strangely positive effect to make up for some of the heavy losses in May.

Anyone with Canadian Dollars to buy, with the Referendum in mind, may wish to move this morning, ahead of these figures, in order to secure the 3.5 cent gains this week for your transfer.

As mentioned above, the EU referendum and Canadian Inflationary figures could have an impact on GBPCAD rates and those looking to purchase CAD may wish to talk to us today on 01494 725 353.


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