With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. The table below shows the difference in Canadian Dollar you would have achieved when buying £200,000.00 during the high and low points of the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
The CAD was boosted during yesterday’s trading against the Pound following a sharp rise in Brent Crude Oil prices, which saw the price per barrel soar to $58. Over the course of the day yesterday the Loonie gained more than a cent against the Pound and provided an excellent opportunity for any clients selling CAD to buy Pounds.
The reason for the rise in the price of Crude was due to tensions in Iraqi and Kurdish forces in the oil rich city of Kirkuk. The main fear is that if the tensions continue then this could result in a break down in the supply chain for the production of oil which could reduce the supply and therefore increase the demand.
As the Canadian economy is heavily reliant on its exports of Brent Crude, the rise in prices could offer a boost to the economy and this therefore bolsters the currency.
The Canadian Dollar could be in for a further boost this week against the Pound, with the uncertainty surrounding the UK potentially weakening the Pound and a raft of data from Canada that, if impresses, could see the CAD rise higher. At the end of this week on Friday retail sales figures for August are released and these are expected to show a slight increase.
Having raised interest rates for the second time this year at their last interest rate meeting, inflation figures will be keenly watched from September to see how the economy has been affected since the hike. The expectations at the moment are for there to be a slight increase in inflation which will be seen as a positive for the economy and we could therefore see the Loonie strengthen as a result.
If this week’s data really impresses, then next week’s interest rate decision will be even more keenly anticipated as there could be extra pressure on the Bank of Canada to hike rates for a third time this year. Keep in touch with your account manager here who can help you stay up to speed with all the latest developments, allowing you to make an informed decision on when may be the best time to purchase your currency.
Thank you for reading my Canadian Dollar report, if you have any questions about an upcoming transfer I would be more than happy to discuss them – you can contact me with any queries on 01494 725 353 or email me here.