With news breaking out of Janet Yellens bullish plans for rapid US Fed interest rate hikes throughout 2017, investors quickly began to question the value of the Loonie, driving GBP/CAD rates as a result. Sterling jumped by 1.6% over the course of the afternoon, eventually reaching weekly highs of 1.628. Yesterdays events showed just how important it is to be kept up to date with the current market trends, our team of foreign currency specialists were able to help our clients maximise their returns on this particular short term spike in the market, making a well-timed $250,000 transfer around £2,600 cheaper.
Furthermore, the Canadian dollar wasnt added by the subsequent Bank of Canada interest rate decision unchanged at 0.5%. Analysts are concerned that the lack of proactive planning could potential drive Investors away from the Loonie long term.
However, given the uncertainty surrounding UK politics at the moment, particularly with the supreme court ruling just around the corner, I wouldnt count on this short term spike being around for long so I would urge Loonie buyers to contact their currency broker sooner rather than later, whos specialist advise will be able to guide them into making an informed decision.
Another reason why I am unconvinced this short term spike will last is because the Canadian Dollar has stayed relatively stable since the new year, consistently maintaining its hold over sterling, marooning its counterpart around the 1.61 mark. This sustained strength stems from a stable flow of positive economic data and the all-important global rise in Oil, Canadas leading commodity.
Yesterday the BOC confirmed it is forecasting 2.1% growth in GDP over the next 2 years with inflation anticipated to be slightly under the projected 2%. Fridays Consumer Price index release will provide more clarity on the matter. Why not open a free account here a FCD, one of foreign currency experts will gladly help you cover all the bases.
The Canadian Dollar is showing signs of strength, and clients with a CAD buying requirement may benefit from talking through a transfer with one of our specialists. Call today on 01494 725 353 if youd like to learn more.
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