This Canadian Dollar report will address the factors that are likely to affect exchange rates in the short term if you are buying abroad or making a currency transfer. The table below shows the difference in Canadian Dollars achieved when buying £200,000 over the high and low points of the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
The Canadian Dollar has been improving recently against Sterling as the Brexit woes drag down the value of the Pound, combined with some strong economic data published recently. The US has announced strong levels of growth as well as a fantastic jobs market, as Canada’s biggest trading partner any good news south of the border often leads to strength for the Loonie against the Pound.
This afternoon Canada will announce their latest inflation data in the form of the Canadian Consumer Price Index. Expectations are for 1.2% year on year. This is higher than last month and with oil prices having risen recently I think the data could come out positively which could see a strong end to the week for the Canadian Dollar vs Sterling.
Yesterday Canadian Manufacturing Sales Data came out and showed a fall in June after three months of consecutive gains. Typically this would have weakened the CAD, but this again highlights the problem the Pound is facing. The data showed a fall in 15 out of 21 industries which represents 72.1% of the economy.
As we go into next week Canadian Retail Sales data is due for release. Expectations are for an improvement of 0.6% month on month and if this happens this will be the fourth month in a row that we have seen signs of improvement. Therefore, if you’re considering buying Canadian Dollars in the short term it may be worth looking at organising a currency transfer promptly, and before the data potentially causes a fall in the value of GBPCAD exchange rates.
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.
For more information on how future data releases could affect your an upcoming Canadian Dollar requirement, call our trading floor on 01494 725 353 or email me here.
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