GBPCAD spikes on weaker Oil prices

The price of buying the Canadian Dollar has improved lately as a weaker Oil price sees the Canadian dollar weaker. Canadia relies heavily on Oil exports and the strength and weakness of the Canadian currency is closely linked to the performance of Oil prices. Most commentators believe that the price of Oil should rise again so this could be a short-term spike GBPCAD buyers should be taking advantage of. The situation has also improved for Loonie buyers as the pound finds some strength ahead of the all-important triggering of Article 50 next week.

I feel that Article 50 sis going to be a very big event for GBPCAD exchange rates as markets try to second guess which direction the price will take. Personally, I expect the pound to rise a little before then falling once we learn of fresh information over just what we can expect from the market. The market’s treatment of sterling could range between positive and negative. Overall the pound has suffered on the back of the Brexit but we could uuqite easily some buoyancy too.

GBPCAD’s performance will I believe also be determined by the market response to Article 50 and any movements in the price of Oil. If you are looking to buy or sell Canadian dollars the next week could see some big movements, I would not be surprised to see rates between 1.61 and 1.70 depending on the news.

If you have been waiting to conduct a GBPCAD exchange now is the moment you have been waiting for. The last few days have seen some big swings on the currency markets which are likely to continue will present some exciting opportunities. If you have a transfer to consider and would like some information on the latest developments to move the rate please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing from you when you are ready.

Sterling Makes Gains Against CAD – Markets Brace Themselves for Article 50

Sterling has made gains against the CAD during the early part of the trading week, with the pair moving through 1.67 at the high.

The Pound has performed well against most of the major currencies this week but the gains made against the Loonie were more pronounced due to the steep drop in oil prices recently. Crude oil is Canada’s main export, so any slowdown in this sector generally coincides with a drop in the CAD’s value and as such the Pound could make a run on 1.70 during over the coming days.

I do feel the CAD is likely to find support around this level and with the triggering of Article 50 confirmed for next Wednesday, those clients holding Sterling may wish to take advantage of the current spike rather than gamble on further improvements during what is likely to be an extremely volatile period for the currency markets.

Regardless of personal opinion I feel the markets will be somewhat relieved when this bill is invoked, as it will remove any remaining uncertainty surrounding the issue. Yes, we still have a long road ahead but hopefully as we move beyond next Wednesday the markets will refocus and assuming there are no nasty surprises around the corner, the Pound has far more chance of a sustainable recovery against all the major currencies, including the CAD in my opinion.

However, there is still no guarantees and as such a negative reaction on the day is entirely possible and as such I would be keen to protect any short-term currency exchanges and not gamble on the current market.

If you have an upcoming GBP or CAD currency transfer to make, then we can help you navigate this turbulent market by keeping clients up to speed with all the latest developments regarding Brexit and beyond.

If you would like us to monitor the market for you ahead of a currency exchange, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on 0044 1494 787 478 and ask one of the team for Matt.

Alternatively, I can be emailed directly on mtv@currencies.co.uk.

GBP CAD Strength on Higher UK Inflation Numbers Today (James Lovick)

Canadian retail sales numbers released earlier today arrived stronger than expected showing a resilient economy which should help the Canadian dollar going forward.

Friday however should make for an interesting end to the week with Consumer Price Index inflation numbers. Any rise in inflation could see the Canadian dollar make gains although they may be somewhat limited as a result of the recent wobble in the price of oil. Oil prices have seen a slip Which has seen the Canadian dollar marginally soften. The dollar is impacted heavily by fluctuations in the price of oil as Canada is a net exporter of oil. Any rise in the price of oil is generally seen as good for the Canadian dollar.

GBP CAD

UK inflation data released earlier today saw some mixed signals with Consumer Price Inflation rising more than expected which helped push the pound higher against the Canadian dollar. Prices at the production level actually falling which paints a less clear picture.

In the UK it is politics and the Brexit which continue to be the main driver for GBP CAD exchange rates. With a date now set for Article 50 to be invoked next Wednesday 29thy March there is likely to be major volatility around this time. This has never been done before in that no country has ever left the European Union so of course there are some major question marks over any final outcome and it is this uncertainty which has continued to help keep the pound weak.
Today also marked the first day of the Scottish parliament meeting where MSP’s will vote on whether Scotland will request a second independence vote. This too could create considerable volatility for GBP CAD after the vote is held tomorrow.

If you would like further information on sterling or Canadian dollar exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Pound wobbly against Canadian Dollar as we await UK inflation data (Joshua Privett)

Pound to Canadian Dollar exchange rates have experienced a wobbly beginning to the day as we wait for UK inflation data to be released this morning.

Initially Asian trading brought in some issues and then when the baton was passed to European trading this morning when it opened the deflation on the exchange rates became much more visible.

The reason why inflation data at the moment is having an exaggerated effect even before the news is released, can be explained with an assessment of recent Bank of England Policy.

Mark Carney, Governor of the Bank of England, last week noted that if inflation edges any higher, the bank will have to step in an raise interest rates. This is a tool used to make credit more expensive, and make saver accounts a higher yielding prospect. Effectively, this is to curtail spending, encourage saving, and therefore decrease the chance of prices running away from reality.

The secondary effect, and the bonus to anyone holding Sterling is that this means the Pound becomes a more attractive prospect for investors. If holding the currency yields a higher return than elsewhere, then demand increases and therefore so does the Pounds value respective to other countries.

Currently the Pound’s base rate is at 0.25% whilst Canada is at 0.5%. Any rise in the UK will likely be by 0.25 basis points up to the 0.5% mark. This will balance the currency favoring of investors towards Canada, and therefore should balance out the current exchange rates which favour Canadian Dollar holders so obviously.

As such, given the current trend for rising inflation, you may see an improvement on GBP/CAD rates by 9:30am GMT with the release of this inflation data, should this suggest the Bank of England’s hand may be forced.

If you are planning to make a currency exchange involving the Pound and the Canadian Dollar, it’s well worth your time getting in contact with me on  jjp@currencies.co.uk  in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

 

Bank of England interest rate decision gives Sterling a boost vs the Canadian Dollar (Tom Holian)

Sterling vs the Canadian Dollar has seen a big upwards surge following the news from yesterday afternoon that one of the 9 members of the Monetary Policy Committee has voted for an interest rate hike.

This is the first time since summer last year when the Bank of England have had any disagreement and this is why Sterling received a welcome boost vs the Canadian Dollar.

UK inflation has been rising recently and this was one of the reasons Kristin Forbes voted in favour of an interest rate hike.

The general anticipation prior to the vote yesterday was for a rate hike in summer 2018 but with yesterday’s announcement we could see a rate hike before this date.

Sterling rose against all major currencies after having a difficult start to the week.

GBPCAD exchange rates are now close to their best level to buy Canadian Dollars with Sterling since January providing an excellent opportunity if you need to send funds to Canada.

However, my personal opinion is that the good news for the Pound will be short lived as Article 50 is due to be triggered within the next 2 weeks.

The uncertainty as we saw with last year’s Brexit vote caused the Pound to plummet against all major currencies including vs the Canadian Dollar and as a precedent has been set my expectation is for a lot of volatility to be coming very very soon.

Having worked in the foreign exchange industry for one of the UK’s leading currency brokers since 2003 I am confident not only of being able to offer you bank beating exchange rates but also help you with the timing of your currency transfer.

If you would like further information or a free quote when buying or selling Canadian Dollars then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

What will effect the Canadian Dollar short term? (Daniel Johnson)

How will the US rate hike effect the Canadian Dollar?

The US dollar actually weakened following the rate hike as Fed chair-lady, Janet Yellen had a very cautious tone when addressing the possibility of further rate hikes. Despite the possibility of a further two rates hikes this year, Yellen indicated there would have to be continued improvement in the US economy in order to justify a further hike and also have the firm belief it would not be detrimental to growth. A rise in oil price contributed to Canadian Dollar strength.

OPEC Deal in danger of Collapse

The Organisation of Petroleum Exporting Countries (OPEC) current deal to constrain oil production is in danger of falling apart. Oil has made modest gains  in price since the deal was struck, however OPEC members such as Iraq have increased oil production endangering the value of oil.

Oil is Canada’s most significant export and if OPEC members continue to ignore the limits on output the Canadian Dollar could suffer. If you have a trade involving the loonie keep a close eye on developments.

GBP/CAD – Super Thursday

Today will see the UK interest rate decision. I would be very surprised to see any change in rates due to the uncertainty surrounding Brexit. What will be of interest however is to see how the Monetary Policy Committee (MPC) voted. Nine members vote on the interest rate, last month all nine voted to keep rates on hold. If there is any change in vote this could have the potential to move markets. The rate decision is followed by the Bank of England minutes which could give an indication to monetary policy moving forward. This could well influence GBP/CAD levels.

If you have a currency requirement I will be happy to assist. You need to be working with an experienced broker during such times of volatility. I will provide a rate comparison against your current provider and also produce an individual trading strategy. I can be contacted at dcj@currencies.co.uk.

GBP/CAD Forecast – What Affect will the Triggering of Article 50 have? (Matthew Vassallo)

It’s been an extremely volatile few days for GBP/CAD exchange rates, with the pair falling towards 1.63 on Monday.

The Pound staged a fightback yesterday, following confirmation that the UK Prime Minister Theresa May now has the authority to trigger Article 50 at any time. This helped boost Sterling’s value, with the pair now trading around 1.6450.

However, there is still uncertainty over when the bill will actually be invoked and as such I feel the current strength is likely to be unstainable in the short-term. Reports over the past 48 hours indicate Scotland will call a second independence referendum and this is sure to put pressure back on the Pound, even though early polls indicate a second No vote would be the more likely outcome.

What is may entail though is a potential delay the triggering of Article 50 until later this month and this uncertainty could easily sap investor confidence once again and the CAD could benefit as a result.

This week’s movement on GBP/CAD rates proves how fragile the UK economy remains in the minds of investors and with the Pound struggling to make a sustained move through 1.65, I would be tempted to take advantage of current levels ahead of what is sure to be an extremely unpredictable few weeks.

The markets are seemingly becoming increasingly concerned about Brexit and I cannot foresee a sustained run for Sterling through this period.

Looking at the Canadian economy and much will depend on the fluctuations in oil prices, their biggest global export. Commodity based currencies such as the CAD are always at risk in times of global uncertainty.  They are reliant on global growth and if investors risk appetite falls and/or oil prices drop again then the CAD will likely suffer as a result.

If you have an upcoming GBP or CAD currency transfer to make, then we can help you navigate this turbulent market by keeping clients up to speed with all the latest developments regarding Brexit and beyond.

If you would like us to monitor the market for you ahead of a currency exchange, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on 0044 1494 787 478 and ask one of the team for Matt.

Alternatively, I can be emailed directly on mtv@currencies.co.uk.

 

Pound gains on the Canadian Dollar as hopes of the Brexit starting this week increase (Joseph Wright)

Sterling gained across the board of major currency pairs today as investors ramped up hopes that Article 50 will be triggered this week.

Some believe the triggering of Article 50, and therefore the formal beginning of the Brexit process, could take place as early as tomorrow if the Brexit will is passed through parliament.

Whilst the Pound gained value today against all majors, some are expecting to the see the pound fall in the wake of the start to the Brexit, but based on today’s performance I’m expecting to see the Pound get a boost once it begins and investors know where they stand regarding the UK’s plans.

The Canadian Dollar is under pressure due to the falling value of oil after last week it was announced US oil stock piles have hit some of their highest levels in recent times. Oil dipped below $50 per barrel today and this is likely to continue to weigh on the loonie’s value as the currency is a commodity currency and its price is linked to the value of commodities.

Moving forward I’m expecting to the see the Pound continue to recover providing the UK economy remains resilient, and if you would like to discuss forecasts and key upcoming events I’ll be happy to offer my input.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

What will happen to the Pound against the Canadian Dollar this month? (Tom Holian)

The Pound has had a strong end to the week against the Canadian Dollar as oil prices have started to fall which has had a negative impact on the Canadian Dollar.

Crude oil has fallen by over 5% and this was the biggest single daily fall for over 12 months and was caused by the US claiming that it currently has a rather large surplus of oil.

The price of a barrel of oil has now fallen to below USD$50 for the first time since December and as oil is such a big exporter and revenue generator for the Canadian economy any negative news often causes weakness for the Canadian Dollar vs the Pound.

We end the week with this afternoon’s Canadian employment figures. The expectation is for 6.8% which is a fairly healthy figure so any change is likely to move GBPCAD exchange rates later on today.

The over riding factor for the strength of Sterling however is what is likely to happen when Article 50 is triggered. The latest is that the House of Lords have put in a challenge to the recent Brexit bill and this has caused a loss of confidence for the Pound in the last few weeks.

With Article 50 due to be triggered by the end of this month we could see further negative movements for Sterling against all major currencies including the Canadian Dollar.

Therefore, the gains we have seen for the Pound against the Canadian Dollar owing to the fall in oil prices is in my opinion just a short term negative move.

If you need to buy Canadian Dollars in the short term it may be worth organising this prior to the triggering of Article 50.

Having worked in the foreign exchange industry for one of the UK’s leading currency brokers since 2003 I am confident of being able to offer you bank beating exchange rates as well as helping you with the timing of your transfer.

If you would like further information or simply a free quote when buying or selling Canadian Dollars then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

The Pound gets a boost as weaker oil prices drive the Canadian Dollar down, will GBP/CAD break 1.65? (Joseph Wright)

The Pound to Canadian Dollar exchange rate received a boost today and recovered some of its recent losses, after the Canadian Dollar dropped as oil prices hit the headlines.

With the Canadian economy being reliant on its exports, and oil being one of its largest exports the value of oil is therefore likely to impact the Canadian Dollar.  This is what’s known as a commodity currency and those planning a currency exchange involving the Loonie should be aware of this as it can lose/gain value when commodity prices hit the headlines.

Oil was in the headlines today because it hit an 8-week low after losing 5%, and this brings the oil price close to $50 a barrel. The reason behind the drop was because of a rise in US oil inventories and therefore an oversupply of the commodity.

CAD exchange rates are also coming under pressure due to the high possibility of an interest rate hike in the US, which would limit demand for the Loonie as investors can hold their funds in the US and achieve a higher return. There is an expected 3 rate hikes to come this year with some analysts outlining the need for 4, so this is another subject those with a GBP/CAD requirement should pay attention to.

Even with the Brexit just around the corner now I can see the GBP/CAD rate breaking 1.65 should the issues weighing on CAD continue to be an issue.

If you are planning to make a currency exchange involving the Pound and the Canadian Dollar, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.