This Canadian Dollar report will examine the factors that could affect exchange rates in the short term to help you stay informed if you need 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 for the past month.
|Currency Pair||% Change||Difference on £200,000|
The GBP/CAD rate was once again resting below the 1.70 level, keeping the rate near to 1-month lows. Oil which is the main influencer for the Canadian Dollar nearly broke the 2 and a half year high as uncertainty in Iran played on investor's minds. The anti-Government rioting could have consequences further down the line and should Oil production become disrupted there could be a reduction in global production levels. Oil prices in 2018 could continue to creep which should help the Canadian Dollar continue to make gains against Sterling.
On Friday the latest Unemployment Data will be released for Canada which is expected to show a slight decrease in the participation rate falling from 5.9% to 6.0%. After the two unexpected interest rate hikes from the Bank of Canada, good data could indicate further hikes are on their way. Stephen Poloz who is the Governor of the central bank, after the second hike last year said economic conditions will entirely dictate when the next hike will happen. Should there be a series of positive data then there could be optimism of hikes in 2018.
Considering the uncertainty surrounding Sterling with the Brexit talks the GBP/CAD could continue to move south, with the 1.65 level a real possibility once again. The last time the rate was at this level was the beginning of October, which means any clients looking to sell Canadian Dollars into Sterling could reach multi month highs. In the last month a well-timed transfer looking to buy Canadian Dollars could achieve you $9820 more when trading £200,000. If you’re looking to transfer funds in the near future with this currency pair make sure you’re in contact with your broker. By setting rate alerts in the market, we can make sure to notify you of a movement in your favour.
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