What will effect GBP/CAD? (Daniel Johnson)

Brexit Bill Update

The very brief Brexit bill currently is being held by the House of Lords after being approved by the House of Commons. Theresa May purposefully made the bill as brief as possible so there would be little possible in terms of amendments. Her plan for a swift, hard Brexit seems to be going to plan as it looks as though there will be no significant changes to the bill by the House of Lords.

If amendments were to take place it could delay the triggering of Article 50. Any changes would have to be approved by the House of Commons and we could see ping-pong situation between the two. This would not sit well with leave voters and there could be public outcry. It would also not benefit Sterling as it would add more uncertainty to the Brexit process.

The bill has now passed the reading stage and the committee stage is due to start on 27th February. There will then be a consideration of amendments before being passed for royal approval.

The news that there is unlikely to be any changes to the bill has been a contributing factor in a Sterling rally against the Canadian Dollar. Another catalyst was recent positive GDP data.

Is OPEC’s deal falling apart?

Oil is one of Canada’s biggest exports and as such the change in oil price can cause swings in Canadian Dollar value. The organisation of petroleum exporting countries (OPEC) recently struck a deal that oil production would be cut by all member countries in order to decrease surplus and increase dwindling oil prices. However , Haider Al-Abadi, Iraqi Prime Minister has stated he is unhappy with the current price of oil per barrel and needs a rise of up to $7. This is despite the fact that Iraq is a contributor to the drop in price, failing to meet the cut in production put in place by OPEC.

If the deal is not taken seriously we could again see a mass excess in oil production and oil price would suffer as would the Canadian Dollar.

Canadian Retail Sales Data and Inflation

Retail sales data came in yesterday and came in below expectations which did see Sterling strengthen. Tomorrow keep an eye on CPI data, it is a measure of inflation and is a a key market mover.

If you have a currency requirement it is vital to be in touch with an experienced broker to assist in maximising your return during such volatile times.

Please do not hesitate to get in touch if you would like my no obligation assistance. I will provide a free trading strategy and I am also confident in beating any competitors rate of exchange.

Daniel Johnson – dcj@currencies.co.uk

What can we expect next for the Canadian dollar sterling rate?

GBPCAD rates have been improving on the back of sterling rising against its counterparts. This has been helped interestingly by polls in France showing Marine Le Pen is looking strong in her campaign to become President. The pound is often used as a safe haven against the weakness in the Eurozone and the pound is enjoying some improvements against the Canadian dollar this afternoon on the back of this. The big question is will this continue and what can we expect to happen on GBPCAD for the rest of this week?

Well tomorrow is a busy day with the release of the latest UK GDP (Gross Domestic Product) figures which are likely to confirm the UK economy growing at a healthy pace. Many commentators are keenly watching the state of the UK economy for any signs that the Brexit vote has negatively impacted the UK. So far this has not been felt too strongly with UK Unemployment at record lows and the UK economy growing healthily. I suspect sterling could rise further on the back of this news and then in the afternoon we have Canadian Retail Sales figures which will be very interesting. A move higher cannot be ruled out but I do expect sterling to remain susceptible to shocks. I would suggest a high of 1.65 if this data sets play out as planned.

Thursday is perhaps bigger news with the latest Federal Reserve Meeting Minutes where we will get some direction on the interest rate policy for the US which has bearing on the Canadian dollar exchange rate as the US dollar has great bearing on the Canadian dollar. This could lead to some improvements for the CAD against the pound as it is widely expected that the US will be looking to raise interest rates in the coming weeks or months. A stronger US dollar generally means a stronger CAD although there is always the prospect of Donald Trump saying or doing something to upset the markets and potentially weaken both currencies!

If you are considering a currency exchange why not speak to us to find out more about our excellent exchange rates and service? It is extremely rare we would not be able to offer a better rate for clients and moreover many clients greatly respect the insight and knowledge we can share with you to help with the planning and timing of any deals.

For more information on the market and all of your options please feel free to contact me Jonathan Watson by emailing jmw@currencies.co.uk. I look forward to hearing from you and helping you with your plans!

Brexit could cause GBPCAD to fall further

Since the UK public voted in favor of leaving the European Union exchange rates have dropped 26 cents. To put this into monetary terms a 200,000 Canadian dollar purchase is now £16,900 more expensive.

For Canadian dollar buyers, the House of Lords should reach a decision to whether Theresa May can trigger Article50 in the upcoming days. I don’t believe they will make any amendments to the white paper therefore the triggering of Article50 looks likely towards the end of March.

With exchange rates falling 26 cents from speculation, when the UK actually start the negotiations with EU leaders I expect further falls in the pounds value, making purchasing Canadian dollars more expensive. If you are purchasing CAD within the next 6 months it may be wise to purchase your Canadian dollars sooner rather than later.

Economic data releases to look out for this week

Tomorrow the UK release their latest GDP numbers. The consensus is for no change and therefore the release could be a non event. However with a slow down in wage growth and retail sales last week, we could see the third surprise in 7 days which would cause further losses for the pound.

Later in the afternoon Canada are set to release their latest retail sales numbers. A slight fall is expected therefore any losses from the morning could be reversed.

If you are buying or selling Canadian dollars this week, month or year and I haven’t covered your currency pair I would recommend emailing me with the currency pair (CADUSD, CADGBP, CADAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **

Pound gains a cent against the Canadian Dollar on Brexit hopes, will the trend continue? (Joseph Wright)

The Pound has gained by almost a cent against the Canadian Dollar during today’s trading session, as financial markets are hopeful that the House of Lord’s will be able to make amendments to the governments Brexit plans (via Article 50).

Investors are hoping that there will be concessions made to the current bill which which is why the Pound has been boosted today, not just against the Loonie but across of the board of major currencies.

The boost can be put down hopes of a ‘Softer Brexit’ than the current plan, as it’s now public that the UK government will formally initiate the Brexit process next month and that they will focus more of controlling immigration as opposed to retaining access to the EU’s single market.

For those planning on making a currency exchange involving the Pound and the Canadian Dollar, I think that how this situation unfolds could be key to how the Pound performs in the upcoming days and week’s as if the concessions aren’t made, it could be that the Pound declines quite steeply.

It’s also worth paying attention to speeches out of the 2 countries as references to future monetary policy are likely to affect the GBP/CAD pair. The next occasion either will be speaking with be tomorrow morning at 10 am when BoE governor Mark Carney will be speaking.

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.

Pound to Canadian Dollar rates fall following poor UK economic data (Tom Holian)

We have seen further losses for Pound to the Canadian Dollar during the end of the week after some poor economic data recently.

Wednesday was the first catalyst for Sterling’s fall as although UK unemployment was close to the best in history we saw the Average Earnings in the UK fall and with yesterday’s UK Retail Sales come out at their lowest point in three years could we now be seeing the effects of the Brexit vote from last June?

Economic data up until this week has been relatively strong in the UK but with the country being so heavily reliant on the services sector and consumer spending this is likely to discourage the Bank of England to look at raising interest rates anytime soon even though inflation appears to be rising.

The next data release of important note if you have a transfer involving Sterling and Canadian Dollars comes on Wednesday with the release of fourth quarter UK GDP data.

GDP has been strong during 2016 but any signs of a slowdown could see GBPCAD exchange rates drop even further so make sure you keep a close eye on this data release on Wednesday morning.

Politically the UK is still in an uncertain period with the trigger of Article 50 due to take place in March. As yet the plan is not entirely clear at to what will happen next so there is a real risk to what happens to Sterling against all major currencies including the Canadian Dollar during this period.

If you would like more information about buying or selling Canadian Dollars and would like a free quote compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.

Working for one of the UK’s leading currency I am rarely beaten on price. 

Tom Holian teh@currencies.co.uk

 

Will GBPCAD slip below 1.60?

The pound to Canadian dollar rate has slipped from the recent highs of 1.66 in January as investors fears over the price of Oil and other economic worries. President Donald Trump is also a factor on the exchange rate which is affecting the GBPCAD exchange rate. To what extent is the pound likely to recover against the Canadian dollar and is there more chance of it actually collapsing again and GBPCAD falling below 1.60?

Markets have been closely monitoring the Brexit situation for attitudes towards sterling but the latest news has surprisingly seen the pound rise. Theresa May’s clarity over Brexit has really helped the pound to find some stability which is potentially boding well for the coming weeks when Article 50 will be triggered. Most clients looking to buy or sell Canadian dollars are correct to be monitoring the upcoming situations but on balance I would probably expect the pound to come off the worst.

If you are looking to make any transactions in the coming weeks involving buying or selling Canadian dollars then make sure you have all the information to make an informed choice. The overall outlook for the Canadian dollar remains positive but Donald Trump could easily upset the market with some comments which would drive some uncertainty on the Canadian dollar. If you have a transfer to make in the future then please get in touch sooner than later to get the latest news and information on the markets to make an informed decision about what will be best.

For more information at no cost or obligation please speak to me Jonathan by emailing jmw@currencies.co.uk

Sterling Strength Softens – Where Next for GBP/CAD Exchange Rates? (Matthew Vassallo)

Sterling’s early year run against the CAD has softened of late, with the Pound finding resistance around 1.65. The CAD has found support over the past week, with the pair now trading around 1.63.

Much of the current market sentiment is being driven by the UK’s on-going Brexit saga and with further developments over the coming weeks, I expect this trend to continue.

UK Prime Minister Theresa May is currently hoping the governments Brexit bill is passed through the House of Lords, which would allow them to trigger Article 50 of the Lisbon Treaty. With the Prime Minister sticking stringently to her March deadline, any delay to this timeline would likely cause further uncertainty among investors and in turn we could see GBP/CAD rates head back below 1.60.

Although I expect the bill to be passed when MP’s meet again to discuss this next week, we just don’t know how the situation is going to develop due to the unique scenario the UK finds itself in. No country has ever left the EU and as a result, no real contingency plan is in place to facilitate our exit.

There are still many questions to be answered in terms of what, if any, trading relationship we will have left with the EU? No doubt the UK will need to negotiate new trade deals elsewhere, a process which could take years before they come to fruition.  Whilst it is not all negative for the UK, as a strong run of recent economic data has proved, we just don’t have enough answers in my opinion to make a frim decision either way.

For this reason I am wary about gambling on the current market and whilst the Pound has gained a foothold in the market over recent weeks, I’m not convinced we will see sustainable Sterling strength under current conditions.

Every time the Pound takes two steps forward it seems to retract and this indicates that the UK economy remains extremely fragile in the eyes of investors.

The Canadian economy also needs to be focused on, as due to their reliance on their export trade, any positive developments in this sector will likely strengthen the CAD as a result.

Canadian Prime minster Justin Trudeau met with President Trump this week and with positive noises regarding increased trade deals between the two countries, could the CAD find further support over the coming days?

If you have an upcoming GBP or CAD currency transfer to make and are concerned about the current market instability, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact us on 0044 1494 725 353 and ask one of the team for Matt.

Alternatively, I can be emailed directly on mtv@currencies.co.uk and can answer any queries you have about the current market trends & forecasts.

Pound to Canadian Dollar exchange rates see rise to begin the week (Joshua Privett)

Pound to Canadian Dollar exchange rates have bolted up, well relatively in this fairly flat market, after what had been a fairly difficult end to the preceding week.

The Pound has regularly suffered on Friday’s since the Referendum, with Sterling exchange rates suffering during the final hours of UK trading.

The reason for these recurring patterns on Friday afternoons is due to abnormal speculative activity – in contrast to during the week. Traders effectively have to choose a stable currency in which to store their weekly profits in for when they are no longer at their desks and in a position to protect their capital from any sudden movements.

Whilst currency markets do close for the weekend, they shut on a regional basis. As such they continue to function in other areas of the world from 6-11 on Friday and in the very early morning on Monday when Asian and antipodean markets are open, which is why such action is necessary.

Since Sterling is considering anything but stable in recent months for obvious reasons the Pound suffers heavily from being ‘sold off’ in droves.

However, with normal trading resuming you do see this reversed most Mondays, and in this case the losses were re-cooperated, and then some.

Today we also have UK inflation data set to be released which could continue Sterling’s rally, and should be seen as an opportunity for Canadian Dollar buyers.

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, therefore a short conversation could save you a significant sum on an upcoming transfer.

Strong Canadian Employment Data sees a drop for GBPCAD rates (Tom Holian)

The Pound vs the Canadian Dollar has fallen during the course of the day which was compounded in the early afternoon following the release of better than expected Canadian Unemployment data.

The figures came out at 6.8% for January which was better than expected and this has led to GBPCAD exchange rates falling to their lowest point of the week.

UK GDP data came out better than expected this afternoon but the positive unemployment figures have helped the Canadian Dollar vs the Pound.

This has coincided with oil prices going in an upwards direction following the recent OPEC meeting where members agreed to curb production and as Canada is a net exporter of oil this has helped to strengthen the Canadian Dollar vs the Pound.

Since the turn of the year the Pound has seen gains of 5% vs the Canadian Dollar as the government appears to be taking steps towards triggering Article 50 however as yet the debate is still rumbling on.

I think until we find out what is happening when the negotiations formally begin with the leaving of the European Union then Sterling will struggle to make any real gains against the Canadian Dollar and if the economic data from Canada continues to come out positively we could see GBPCAD exchange rates fall below 1.60 again on the Interbank level.

Next week on Tuesday UK inflation data is due to be published and with inflation rising then this could put more pressure on the Bank of England to look at raising interest rates in the future so if the data is positive then this could help the Pound vs the Canadian Dollar in the short term.

If you have a currency transfer to make involving Canadian Dollars and would like further information or a free quote then contact me directly.

I have worked in the foreign exchange industry since 2003 and I am confident that I can help you with the timing of your transfer as well as bank beating exchange rates. I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

Economic data releases that will impact GBPCAD exchange rates for the remainder of the week (Dayle Littlejohn)

Clients that have exposure and need to convert pounds into Canadian dollars should expect a volatile end to the week due to economic data releases throughout Fridays trading session.

The UK are set to release Industrial and Manufacturing numbers at 9.30am. Monthly numbers are set to show a decline where as yearly numbers could show an improvement. There is a strong chance the numbers could counteract one another, however numbers since Brexit have surprised the market therefore the releases could end up providing strength for the pound.

Later in the afternoon unemployment numbers will be released for Canada. This release can have a major impact on the value of the Canadian dollar. Unemployment is set to be released at 6.9% and therefore no change from last months release, again this release could be a non event however if you have a currency requirement to make putting a plan in place before this release would be the safe option.

Brexit update

As expected the House of Commons approved Theresa May’s Brexit bill yesterday and we now have to wait to see if the House of Lords will follow. I would be shocked if the lords to do not follow suit therefore Brexit is looking likely for the end of March and and an exit from the single market looks likely. I predict GBPCAD will be in the high 1.50s by the end of March.

If you are buying or selling Canadian dollars this week, month or year and I haven’t covered your currency pair I would recommend emailing me with the currency pair (CADUSD, CADGBP, CADAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **