This Canadian Dollar report examines the factors that have the potential to effect your CAD transfer over the coming weeks.
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The latest Canadian interest rate decision is due to be made on Wednesday afternoon with many expecting to see a rate hike to 1.25%.
With their southern neighbour (the United States) having hiked rates three times during last year to me I think the rate hikes are an attempt to keep up with the US.
Indeed, this is the third interest rate hike in the last six months and it appears as though the economy is improving in Canada which has encouraged the central bank to change monetary policy.
If Canada does not hike rates as expected we could see GBPCAD exchange rates move in an upwards direction so if you’re considering making a currency transfer involving Canadian Dollars then pay close attention on Wednesday afternoon.
One major sticking point for Canada is the ongoing uncertainty of the NAFTA agreement. However, whilst crude oil prices remain favourable then I think there is room for a rate hike so I would not be surprised to see a rate hike on Wednesday.
On Thursday Canada releases its latest Unemployment figures and we end the week with the release of Manufacturing Sales for November and both could cause a lot of movement for GBPCAD exchange rates.
Overall, if a rate hike does occur then I expect to see a lot of movement of Canadian Dollar strength but as Canada trades so heavily with the US as the US Dollar is under a lot of pressure any further negative movement for the USD could result in problems for the Canadian Dollar.
Owing to the time difference between here and Canada even though you may not be able to speak with your account manager outside of trading hours it may be worth looking at utilising a Limit Order which allows you to set a pre-determined rate which is automatically triggered if we are able to buy at your desired rate.
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 using firstname.lastname@example.org.