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 below table shows the difference in Canadian Dollars you would have received when buying £200,000.00 over the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
Today could prove to be an influential one for the CAD, with the Bank of Canada’s interest rate decision and subsequent press conference from 15.00 onwards, as well as import and export figures for July a few hours earlier. Following the Bank of Canada’s most recent interest rate decision, where there was a hike in rates for the first time in almost 8 years to 0.75%, Stephen Poloz, Governor of the BoC, said that the next move by the bank would be dependent on data releases. If last week’s data is anything to go by, with very strong GDP figures for Q2 of this year, there is a chance that a rate hike could be announced. Any comments from Poloz are also likely to drive the CAD’s value, so it is important to keep in touch with your account manager here who can keep you up to speed with the latest developments.
July’s export figures could also provide a boost for the CAD, as a spike in the value of crude oil in July compared with June could have seen a boost in sales for Canada’s largest export. Since the devastating hurricane Harvey just last week which caused destruction in Texas and also lead to the closing down of some oil refineries, we have seen the price of Brent Crude soar over the last few days which could provide the Canadian economy with a further boost in the coming months and upcoming data releases, so there could be reasons for further CAD spikes further down the line. As Canada is heavily reliant on its exports of Crude oil, the higher the price the better for the economy and therefore the Loonie.
Friday could also be a key day for GBP/CAD rates, with a number of data releases for both economies. As mentioned in my Sterling report, with the weakened Pound over the Summer, we could see a boost in the UK’s trade balance figures which may see the Pound strengthen. There are also UK GDP estimate figures and Canadian jobs data released, so anyone with a CAD requirement should keep a close eye on events as they unfold.
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.