This Canadian Dollar report looks at the factors that could effect the rate of exchange for your currency transfers in the short term. In the table below you will find the difference in CAD you would have achieved when buying £200,000 over the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
The hawkish speech by Governor of the Bank of Canada (BOC), Stephen Poloz on Wednesday saw GBP/CAD rates lose more than a cent over the course of the afternoon trading session. Summarising that low interest rates had “done their job” Poloz has helped to bring previously worryingly high unemployment levels down to the current 6.6% rate, some of the lowest levels seen in more than two years for the Canadian economy.
Whilst the passing of the Queens Speech yesterday helped GBP/CAD to recover some of the ground it lost earlier in the week I believe current rates are the best we will see in the coming months for those with a CAD purchase requirement.
With the next interest rate meeting less than two weeks away, on July 12th, and the case for a hike getting stronger by the day sterling looks as though it may be beginning to lose its grip on the loonie. Now may be the time to act if you have a CAD purchase requirement. Even if your requirement is not in the immediate term you are still able to lock in today’s rate for up to 18 months through the use of a forward contract, contact your account broker here at Foreign Currency Direct to learn more about this option.
Later today at 1:30pm we see the release of Gross Domestic Product figures for April, totaling the value of all goods and services produced within the economy. At 15:30pm the Bank of Canada Business Outlook Survey details the short term economic situation. With little economic data coming out next week for Canada, I believe it will be further information regarding the appetite for interest rate hikes in the UK, US, Eurozone and Canada that will be the fundamental driver behind CAD paired rates.
For more information on how your upcoming transfer could be affected by future data releases, call our trading floor on 01494 725 353.
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