Volatile Week for Canadian Dollar as Oil Price Crashes (Ben Fletcher)

The cost of a barrel of oil hit a 7 month low this week causing the GBP/CAD rate to finish the week a percent higher than the middle of the week. Sterling has suffered earlier in the week as Bank of England Governor Mark Carney dampened hopes of an interest rate hike in the near future. However the gains made by the CAD were short lived after the price of a barrel of oil started to slip.

The cost of oil dropped to $45 for the first time this year and experts are suggesting this could continue to fall towards $40 a barrel. The reason this is so significant for the Canadian Dollar’s value is oil is Canada’s biggest export. If Oil was to once again to slump the same as it did this time last year, there is very little opportunity for the CAD to gain. Furthermore an oil price crisis would also deter the Bank of Canada from considering an interest rate hikes.

In the short term the GBP/CAD is likely to revisit the 1.70’s in my opinion and over the longer term I can see the rate move towards 1.80’s. Sterling has been weak in the past few weeks following the election result but as the Brexit negotiations appear to be off to a positive start things may change. There are so many factors effecting the rates of exchange that monitoring the market and setting expectations will make sure you’re maximising your funds.

I am able to help you time and transfer, offering a cost saving solution for completing currency transfers. Working for an established brokerage I can set rate alerts and discuss forecasts to assist with your plans. If you would like to ask any questions with regards to an upcoming requirement please email me at brf@currencies.co.uk

Canadian Dollar Makes Excellent Gains after Strong Retail Sales! (James Lovick)

The Canadian dollar has seen a strong rally today after Canadian retail sales numbers surged unexpectedly higher today. The strong data signals a buoyant sector and may help boost Gross Domestic Product (GDP) going forward and this has helped drive the dollar higher. GBP CAD fell by almost 1% to a low of 1.6726 in afternoon trading following the announcement creating a good short term opportunity to sell Canadian dollars.

Those clients looking to sell Canadian dollars for Euros are seeing a good opportunity to buy which may not last indefinitely with the fluctuating price of oil, which heavily impacts on the Canadian dollar. In general a fall in the price of oil is negative for the Canadian dollar. Only yesterday the price of oil fell sharply having a negative impact on the loonie so today’s strong retail sales numbers are welcome news.

CAD EUR has also seen a good day today and in these markets the aim is to try and find these opportunities as they come about. We can help assist in looking for these opportunities as they come about and effectively be your eyes and ears on the markets.

Further oil price fluctuations in these coming weeks are only likely to create more volatility for the dollar and hence this present opportunities for buyers and sellers alike.

Tomorrow sees Consumer Price Index inflation data from Canada which is likely to have a sizeable impact on the Canadian dollar. Expectation is for a small drop in the headline inflation figure which could see the Canadian dollar weaken.

If you would like further information on 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

What can we expect next for GBPCAD rates?

The pound looks like it could fall further with the outlook ahead for the UK very shaky indeed. Currently we have a minority Conservative government and the Queen’s speech which was a much watered down version of the Conservative Manifesto has failed to set the pound alight. The price of Oil is a major factor on Canadian dollar exchange rates and the price of Oil fell yesterday, once again on more global concerns about oversupply. If you need to buy Canadian dollars I think this small improvement could potentially lead to some further small spikes to take advantage of. The general belief in the future is the pound will fall so CAD buyers who wish to get the best rates need to do everything they can to maximise the opportunity.

The Canadian dollar looks like it will continue to struggle throughout the year with concerns over the outlook for the price of Oil. Such opportunity will perhaps end up short-lived in the grand scheme of where the pound could be headed so clients looking to buy Canadian dollars should be treading very carefully since the rates could easily move against them.

All in all the pound will I believe continue to hit a brick wall as a result of the continuing political and economic uncertainty weighing on the currency markets. If you have a transfer in the future making plans around such events is crucial to maximising the amount of currency that you receive. Many deliberate attempts by clients to hold on for a better rates selling the pound for the Canadian dollar has passed unsuccessfully but I do believe the more short term outlook could present opportunities.

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. I am Associate Director of one of the UK’s largest independent currency brokerages and am confident I can help with some useful information to help you maximise your transfer.

Will the Pound fall further against the Canadian Dollar? (Tom Holian)

The Pound vs the Canadian Dollar has experienced some positive gains today after Bank of England member Andy Haldane suggested that he was considering voting for an interest rate hike this month which would have taken the vote to 4-4. He also suggested that the Brexit risk is not gone but that UK growth remains solid.

Last week when the minutes were published the split was 5-3 in favour of keeping interest rates on hold which came as a big surprise to the market as for months we have only seen 1 of the members vote for a rate hike so this gave the Pound a brief boost.

However, since then the Pound has fallen to its lowest level to buy Canadian Dollars in months so today’s comments from Haldane helped to give the Pound a brief respite from the recent losses.

Canadian Retail Sales are due out tomorrow afternoon with the expectation for 0.7% growth month on month so anything different is likely to cause movement for Sterling vs the Canadian Dollar.

The main issue that is affecting Sterling exchange rates against all major currencies is that of the Brexit talks which so far have not gone that well.

When you look at it there are 27 member states all wanting one thing which is to maintain the stability of the European Union so in my mind I cannot see how the talks will go that positively in the near future.

Therefore, this is why I think in the short term we could see problems facing the Pound vs the Canadian Dollar.

If you have a currency transfer to make and would like to save money when transferring Canadian Dollars then contact me directly for further information or for a free quote.

Working for one of the UK’s leading currency brokers I am confident of being able to make you a saving on rates compared to using your own bank.

Tom Holian teh@currencies.co.uk

Pound to Canadian Dollar rates and the Queen’s speech (Joshua Privett)

Buying Canadian Dollar rates of exchange using the Pound have taken a hammering as of late due to positive news emerging from Canada, contrasting the prolonged and uncertain atmosphere in the UK.

But after a week and a half of delays in announcing the new Government and its plans, this may be about to change. The Queen’s speech and the commencement of the new Parliament begin today, and some clarity on the UK’s situation may finally bring some life to the Pound.

Speculation has been rife. Will the UK be aiming for a softer exit from the EU now given the most recent election results? If so, which features will they aim to keep in their affiliation with the EU? Even fundamental questions like whether the Conservative Party members will fall in line with Theresa May must be addressed.

For now GBP/CAD exchange rates are back to the levels seen in April, but still 5 cents higher than the worst levels in January.

At this point markets have opened up low for Sterling. This is unsurprising, some will be wishing to relieve themselves of Sterling by selling it off in case any major controversies occur. This is not necessarily the trend for the day, but more cautious trading ahead of long anticipated and likely big news.

Positive moves in oil prices have dominated the GBP/CAD pairing recently with the Canadian Dollar making significant inroads within a short period, however, the baton will be squarely in the UK’s court today.

I feel that any clarity should be positive, it is just a question of how well markets could receive the news. GBP/CAD may only go up 0.5 cents or it could go up 3.

In these situations where a positive spike is expected, a popular option retail and corporate CAD buyers alike may wish to consider is a Limit Order. This is a free tool which allows you to secure an exchange rate you desire the second it is hit in the live market.

I strongly recommend that anyone with a Canadian Dollar buying or selling requirement should contact me on jjp@currencies.co.uk to discuss a strategy for your transfer aimed at maximising your currency return.

I have never had an issue beating the rates of exchange on offer elsewhere, and these current buying levels can be fixed in place for anyone planning a transfer later in the year and wish to secure the current exchange rates available now. This is a popular option for anyone selling Canadian Dollars to buy Sterling.

Pound to Canadian Dollar rate drops as Bank of England governor disappoints the markets (Joseph Wright)

Those of our readers and clients planning on exchanging their Pounds into Canadian Dollars at better exchange rates have been disappointed today, as the Governor of the Bank of England, Mark Carney has disappointed the markets during an early morning speech earlier today.

Many had hoped of an interest rate hike, which would most likely of resulted in an upward movement for the Pound, but he quelled hopes early into his speech when he said that the BoE would be willing to overlook the increasing rate of Inflation as raising rates before we know of the Brexit outcome wouldn’t be right.

Just last week almost half of the voting members of the Bank of England voted in favour of raising rates. The Pound climbed off the back of this news but today’s words from Mark Carney have put those hopes to rest.

There is little data due out this week for the Pound specifically, so I think that those watching the Pound to Canadian Dollar rate should look out for Canadian economic data for the next major market mover.

This Friday at 1.30pm there will be inflation data our for Canada which could impact the rates if figures deviate from the expectations.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

BoE Governor Carney Indicates UK Not Ready for Interest Rate Hike (Matthew Vassallo)

Sterling has come under further pressure this morning, following Bank of England (BoE) Mark Carney’s Mansion House speech.

Carney declared that the UK isn’t yet ready for an interest rate hike, citing weak wage growth and a growing uncertainty over how Brexit negotiations will play out.

GBP/CAD rates have fallen, with the Loonie gaining almost a cent during Carney’s speech.

Investors had clearly started to factor in a prospective rate hike, with Sterling’s value rising following last week’s BoE Minutes. These showed that two more members had voted in favour of a rate hike, news which immediately helped Sterling make inroads against its CAD counterpart.

Today’s information is likely to dilute any major advances for the Pound in the short-term and a move back towards 1.70 seems unlikely over the coming days.

The Pound was already reeling following the recent disastrous election results and with Prime Minister Theresa May’s Tory government seemingly on the edge of anarchy, where next for the UK economy and the Pound?

With economic data for both the UK fairly sparse this week, it is likely that any media reports regarding the start of Brexit negotiations will be key to both currencies short-term fortunes.

I feel that whilst so much uncertainty hangs over the UK, in terms of how we will separate ourselves form the EU and what deal will remain in place, the Pound is unlikely to sustain any major advances against the CAD.

The current market is so unpredictable that any short-term gains should be considered and any medium to long-term positions should be protected. The CAD itself is not immune, with global risk appetite shrinking commodity based currencies such as the CAD could come under pressure.

With a heavy reliance in the Canadian economy on the export of crude oil and a falling market, the CAD could find life tough going over the coming months.

The truth is that we just don’t know how the UK economy, or the global market will react to the on-going Brexit negotiations and global unrest in the Middle East and beyond. I am advocating to all my clients that they remove as much risk as possible from what has become a disjointed and uncertain market.

If you have an upcoming GBP or CAD currency transfer to make and would like to be kept up to date with all the latest market movements, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt.

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

Where next for GBPCAD currency exchanges?

If you are looking to purchase pounds with Canadian dollars, we are are close to some of the best rates in the last few weeks for such a transaction. There is an overall belief that the market will continue to favour clients looking to buy the pound because the pound will get weaker. This is without doubt a possibility but with sterling having dropped so much in the last week then I do feel hoping we will see dramatic improvements is a risky strategy. Clients buying Canadian dollars could be offered some respite with a whole host of Canadian economic data released next week.

The pound is of course lower because of the UK election result but the expectation for the pound could now be a gentle move higher or at least a reduction in further losses, as markets bet we are more likely to see a ‘softer’ Brexit. This implies access to the single market and also free movement of people is retained, meaning the pound and the UK avoids the cliff edge that a ‘hard Brexit’ would entail.

Of course GBPCAD is also driven by the Canadian dollar and the main driver here is the price of Oil. With the OPEC (Organisation of Petroleum Exporting Countries) agreement hitting snags from the fact global supply remains at buoyant levels the Loonie is weaker overall. The belief that the agreement is unlikely to trigger the rises longer term on the price of Oil means we might not see the strength on the Canadian dollar we had hoped.

This means the pound and the Canadian dollar will continue to be at loggerheads. If you need to sell CAD for sterling I would be suggesting current levels are very much worth taking advantage of or strongly considering. If you have a transfer to make we can offer assistance with the timing and planning of any deals to help minimise your exposure to the market.

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from you.

BoE Interest Rate Decision Boosts Sterling (Matthew Vassallo)

Sterling received a welcome boost yesterday, following the latest Bank of England (BoE) interest rate decision.

Despite our central bank keeping rates on hold at 0.25%, the members voted 5-3 against a rate hike. This was an unexpected improvement from last month’s 8-1 vote and Sterling instantly gained value as a result.

With the current high levels of inflation, an interest rate hike seems more likely over the coming months and the markets reacted to this, with GBP/CAD moving back above 1.69.

The CAD is likely to find support at 1.70, a key resistance level for the pair and as such those clients holding the Pound may wish to take advantage of yesterday’s unexpected improvement.

It was not all good news for Sterling, with UK Retail Sales figures coming out under expectation and with economic data of late mixed at best, I’m wary about assuming that yesterday’s positive trend will continue.

The markets will now look to the Queens speech next Wednesday, with any deal between Prime Minster Theresa May’s Conservative’s and the little known DUP party, likely to stabilise the Pounds recent devaluation.

With Brexit negotiations yet to begin and pressure building on the PM to form a strong working government ahead of this, there are still many unanswered questions. The on-going uncertainty surrounding these talks is unlikely to support any aggressive advancements for Sterling and therefore I still feel clients should be looking at short-term opportunities, rather than hold out for long-term sustainable gains.

Whilst a cloud of uncertainty hangs over the UK economy, Canada has concerns of its own. This is due to the price of crude oil falling to a five-month low recently, which is likely to have a negative effect on Canada’s export driven economy. With Oil being their main export, any downturn has an instant negative effect on their economy and the CAD is likely to lose value as a result. The Loonie has also suffered of late due to the tariff introduced on Canadian lumber to the US and with three quarters of Canada’s exports heading to their nearest neighbours, any further tariffs could heap pressure on CAD.

Due to the CAD being a commodity based currency, it is heavily reliant on global growth and a such any upturn in the US & China, two of the globes largest economy can drive these currencies values up. This means that investors will look to GBP/CAD for example and see the opportunity to make more money on bigger market swings and thus, the pairs value can fluctuate quite substantially.

If you have an upcoming GBP or CAD currency transfer to make and would like to be kept up to date with all the latest market movements, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me 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 Rises after Surprise at Bank of England Meeting Today (James Lovick)

The pound has rallied against the Canadian dollar after the eagerly awaited Bank of England meeting today saw three of its members vote for an interest rate hike. In a signal to the markets that an interest rate hike could come sooner that most had thought, the pound reacted immediately with a jump higher. GBP CAD has risen to a high of 1.6993 although still some way lower than before the UK election on Friday.

There could be a big market movement for this pair in the coming days as a formal announcement is expected to be made confirming a Conservative government which is to be supported by the Democratic Unionist Party (DUP). Nothing is certain at this stage in terms of its formation but in my view the deal will go ahead and the pound should see a rally on the back of it.

The markets are looking for certainty as to who is running the country and this should be positive for the pound. A move higher to 1.73 for GBP CAD seems plausible in this outcome. Clients looking to buy Canadian dollars would be wise to get in touch to set things up ready for the potential spike higher.

The Canadian dollar received a small boost today after manufacturing shipments for April showed an improvement although upcoming data should create more volatility for the loonie. Next week should be very interesting for the Canadian dollar with a raft of economic data. Retail sales data is released on Thursday whilst Consumer Price Index inflation numbers are released on Friday which should make for an interesting end to the week.

If you would like further information on 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