Official data released on Friday showed that the Canadian Economy grew faster than was expected during April and kept the hopes for an interest rate hike alive at July’s Bank of Canada interest rate meeting. Today's Canadian Dollar forecast looks at how the expectation for an interest rate hike can improve Canadian Dollar rates, the table below shows the range of exchange rates over the past month, demonstrating the difference in CAD you could have achieved depending on when you carried out your transfer.
|Currency Pair||% Change||Difference on £200,000|
Over the weekend Canada retaliated to America’s trade tariffs by imposing $13bn worth of tariffs on US goods, effectively as of yesterday. Items on the list include coffee, toilet paper and yogurt. These items are said to bear political significance; for example, Canada imports about $3bn worth of Yogurt annually and the majority of it comes from one plant in Wisconsin, the home state of House speaker Paul Ryan.
Canada’s Foreign Minister Chrystia Freeman said that these were dollar for dollar retaliations, although it is unclear as to whether Donald Trump will view this the same way and if further escalation will be taken from the US president, with Trump threatening to impose tariffs on the automotive industry which would affect the Canadian economy badly.
Whilst this has been benefitting the US Dollar, the Canadian Dollar has felt the pressure as a result of the trade war. The North American Free Trade agreement has been delayed until after the midterm elections it emerged last night, in hope of a better deal for the US.
With little data out this week that could move GBPCAD on the Canadian front, I’d expect attention to remain on the trade war and Brexit developments.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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