Daniel Wright
Sales Director
Sterling makes gains against the Canadian dollar
Brexit and global trade wars cause volatility for the pound to Canadian dollar exchange rate.
Request a quoteThe British pound sterling made some gains against the Canadian dollar on the interbank market this week. In part, this is because opposition MPs and rebel Conservatives have voted to oblige Prime Minister Boris Johnson to extend Article 50.
Trade war weighs on Canada’s factories and exports
In addition though, the Canadian dollar has fallen, because there have been signs of weakness in Canada’s economy. For example, we learnt this Tuesday that Canada’s factory sector contracted in August, falling to 49.1 according to IHS Markit’s PMI survey. This reflects a worldwide trend, in which the trade war is suppressing countries’ manufacturing industries.
In addition, Canada’s trade deficit unexpectedly rose in value in July, said Statistics Canada this Wednesday, up to -CA$1.12 billion, above forecasts for -CA$0.4 billion. This is because the value of Canada’s exports fell in July, while imports increased.
Canada’s GDP gains, Bank of Canada holds interest rates
That said, not all of Canada’s recent economic data has been negative. To start with, Canada’s GDP expanded by +0.2% in June, exceeding economists’ forecasts for slower +0.1% growth, said Statistics Canada last Friday.
In addition, this Wednesday, the Bank of Canada announced that it was holding interest rates steady, at 1.75%. To some extent, this bucks a global trend, in which the Reserve Bank of New Zealand, US Federal Reserve, and European Central Bank have all cut or are planning to in the near future. So these comparatively upbeat economic data may influence the Canadian dollar too, looking ahead.
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D. Henshall
UK
Top currency broker. Fantastic Daniel Wright was really helpful. I have now changed my currency broker I have been with for 10 years to yourselves.
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UK
The whole process was simple by Daniel Wright. He described the various stages to the process very clearly & was always available to talk to. A very knowledgeable & friendly person! I highly recommend Foreign Currency Direct.
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UK
Superb none better. Impeccable service. So so efficient. Absolutely delighted with the way this company works and especially Daniel.
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UK
Would always recommend them. They have their fingers on the pulse and could not be more helpful. Have dealt with Daniel Wright every time who is polite, patient and charming.
M. Bickerton
Spain
We spoke with Daniel for only a few minutes and the funds were in our Spanish Bank Account later that day at the best exchange rate one could get on the day. We would never use anyone else to transfer our funds abroad.