Can Sterling Recover Against The Canadian Dollar? (Ben Fletcher)

The start of this week has been fairly difficult for people looking to purchase Canadian Dollars as the rate dropped over 2 cents. However there does appear to be some light at the end of the tunnel, with the last two days bringing gains to the GBP/CAD. Sterling in my opinion could start to have a change of events with upwards movements on the horizon due to the UK Brexit Papers being released. If the 12 documents that are set to be released by the Government do provide clarity in the route being taken for Brexit that could settle markets, easing concern for businesses.

Canadian Dollar Gains

There are two other reasons as to why the Canadian Dollar is so strong at the moment. The price of a barrel of oil which makes up for over a quarter of Canada’s exports has been on a positive run. Whilst at around $50 a barrel its a long way from any highs, there is less concern for a collapse as there has been in the past.

The second major factor is the Bank of Canada have raised interest rates, this is something only a handful of nations have managed in the past few months. Furthermore the US look as they there may not be any further interest rate hikes which means if Canada kept raising interest rates you may see investors leave the US Dollar and invest in Canadian Dollars. The Strength in the Canadian Dollar against Sterling may suggest this process has already started. Over the next few weeks I think its possible that Sterling could start to make some gains moving back above the 1.65 level.

If you do have a large transfer in the near future, we can help you time and complete a transfer achieving the best rates of exchange.. When you come to moving large sums of money a movement of a cent can often relate to a significant difference in your returns. Helping you formulate a strategy could make sure you’re in the best position to exchange currency when the market is in your favor, please contact me Ben Fletcher at brf@currencies.co.uk

 

GBPCAD drops even further! Will we break 1.60?

Overnight the CAD dollar has strengthened against the pound as investors concerns over the likelihood of further US interest rate rises increase. The expectation of further hikes in 2017 is fading and this has seen the US dollar lose ground across the board. One beneficiary of this has been the Canadian dollar which has strengthened against the pound moving to lows last seen in July, but to get lower you would have to go to last year. This is presenting an excellent opportunity to any client selling Canadian dollars for pounds, for every 100,000 CAD sold compared to the worst rates this year, you would now be getting an extra £5000!

If looking to move on a purchase or sale of the Canadian dollar for pounds then getting the best rate and timing is crucial to maximising the transaction. Overall expectations for the pound remain fairly subdued and a move lower to 1.60 could not be ruled out. However ongoing concerns in Canada including the outcome of any trade renegotiation with Trump could all put pressure on the Canadian economy.

I believe a move towards 1.60 is likely but do not think we will actually break through it. Clients looking to buy Canadian dollars might benefit from sitting out the current move and holding fire for future improvements although depending on how long you have to wait this could prove a costly exercise.

We offer a specialist service to help with the planning and timing of any currency exchanges that you will need to make in the future. A small difference in the exchange rate can lead to a big difference in the amount of currency that you receive and getting the timing right is crucial to getting the most for your money.

If you would like more information on where the currency pairing is headed and to discuss strategy specific to your situation, please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

GBP CAD Rates Ahead Of Brexit Announcements

GBP CAD exchange rates could be in for a volatile ride with British politics and Brexit developments causing a storm. Position papers from the British government are expected later today and there are already murmurs of a transitional agreement with the EU which could potentially be seen as positive for the pound.

It is worth remembering that the pound has remained subdued largely as a result of Brexit so any developments are likely to be sensitive. Expect considerable volatility this week as developments unfold. Clients looking to buy Canadian dollars could see some better opportunities around the corner and it may be worth holding out for the detail. Anyone with a pending requirement would be wise to get in touch at this stage in readiness to secure a better rate.

The price of oil has also been fluctuating in response to the crisis in North Korea and the Canadian dollar has reacted accordingly. Canada being a major net exporter of oil is directly impacted by political events. A fall in the price of oil is generally seen as negative for the Canadian dollar and this is why the Loonie has seen a little bit of weakness.

Looking forward there could be an interesting end to the week with the release of Canadian inflation numbers which the Bank of Canada will be keeping a close eye on. The Bank of Canada raised interest rates in July and there is talk of further hikes to come. This rhetoric should only help the Canadian dollar going forward and a high inflation number this week could help support the dollar.

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

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

The Pound has continued to struggle against the Canadian Dollar as the UK economy is showing signs of problems.

UK Trade Balance came in a lot lower than expected which has caused further losses for the Pound against all major currencies including vs the Canadian Dollar.

Brexit negotiations have been going on for weeks but as yet nothing has really been decided and we still don’t know whether we’re heading for a soft or a hard Brexit.

The uncertainty caused by the Brexit negotiations is clearly hampering the Pound and credit ratings agency Moody’s has recently highlighted the problem caused by rising consumer debt in the UK combined with weak wage growth.

This means that the cost of living is going up in the UK and the Bank of England are clearly unlikely to raise interest rates any time soon which is causing problems for Sterling vs the Canadian Dollar.

US jobs data has been very positive recently and as the US is Canada’s biggest trading partner this is part of the reason why the Canadian Dollar has remained so strong recently.

If you have a 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 (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Pound to Canadian Dollar rate getting closer to post-Brexit vote lows (Joseph Wright)

When compared with the Canadian Dollar, the Pound isn’t in as bad a position as it is when compared with the Euros for example.

Since the Brexit vote last June the lowest the GBP/CAD rate has dropped is around 1.5850, and at the moment the Pound to Canadian Dollar rate is trading around 5-6 cents higher than level.

The Pound has been fortunate not to fall back to those lower levels as this week the Pound to Euro rate has hit a new post-Brexit vote low, which is what the GBP/CAD rate would most likely have done if the Canadian Dollar wasn’t under some pressure of its own.

The price of oil has recently dropped with has negatively impacted the Loonies value due to oil being one of the nations biggest exports. At the same time demand for the commodity based currencies such as CAD, ZAR and AUD have been in less demand than usual due to the geopolitical concerns surrounding the US and North Korea tensions at the moment.

There isn’t any major economic data scheduled for releases later today out of the UK or Canada, so the pair are likely to be driven by sentiment.

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.

Will GBPCAD fall below 1.60 or rise above 1.70 first?

Well this currency pairing is looking more and more unpredictable as we go on, only a few weeks ago when the Bank of Canada raised interest rates it looked like the CAD would continue to rise but since then a change in both the outlook on interest rates for the United States and also the UK has seen some volatility on the currency pair. All in all I would expect there is now more chance GBPCAD slips below 1.60 than rises above 1.70, this is mainly to do with the weakness for sterling.

The Canadian dollar was benefiting form increased expectations that Canada would follow its biggest trading partner the US in raising interest rates further. We have now actually seen those expectations pared back for both the US and Canada which saw GBPCAD rise to 1.67. However very recently speculation surrounding the likelihood of a nuclear war with North Korea has sent the US dollar higher which has also dragged the Canadian dollar down too.

The pound is majorly struggling as we have been provided with clear indications that the UK are unlikely to raise interest rates in the coming months and this has seen the pound lower against all currencies. There is a light expectation much longer term we will see this change but for now if you need to buy CAD with the pound getting something done sooner than later seems sensible.

If you have a transfer to make in the coming weeks and months it appears making some plans around this volatile market is very sensible to avoid being caught out should something unexpected happen. For more information please speak to me Jonathan by emailing jmw@currencies.co.uk with a detailed explanation of your position and a phone number to contact you on to discuss further.

Pound falls against the Canadian Dollar owing to US Jobs Report (Tom Holian)

The Canadian Dollar rate vs the Pound has strengthened towards the end of the week after the US economy posted better than expected jobs data for July.

A total of 209,000 new jobs were created last month and the unemployment rate also hit the lowest number since 2001. Both the US Dollar as well as the Canadian Dollar have gained towards the end of the week owing to the news.

After having a slow start to the week the Canadian Dollar has ended the week on a high creating some better opportunities to buy Pounds with Canadian Dollars.

We also saw the Pound fall yesterday afternoon when the Bank of England cut the UK’s growth forecast for 2017 from 1.9% to 1.7% and down to 1.6% for 2018. The interest rate decision saw a change from 5-3 to 6-2 in favour of keeping interest rates on hold.

Canadian Import data was also better than expected which led to the CAD ending at its lowest level all week.

Next Tuesday the latest NIESR GDP estimate for the last 3 months is due out and I think this could highlight further problems for the British economy causing the Pound to fall against the Canadian Dollar.

If you have a 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 (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Pound slides after latest Bank of England comments, will the GBP to CAD rate continue to drop this year? (Joseph Wright)

The Bank of England yesterday opted to keep interest rates on hold, and whilst this was expected it was the less bullish voting patterns and dovish comments from the BoE’s governor that caused the Pound to fall further.

Due to the increasing inflation pressures after the Pound’s drop in value since the Brexit vote, there had been talk of raising interest rates in order to counter this, and previously the voting members of the Bank of England had voted at almost a 50/50 split in favour of a hike.

The voting outcome wasn’t as close this time at 6-2, and therefore the Pound fell as soon as the result was released and it wasn’t helped after the governor of the Bank of England, Mark Carney announced that growth forecasts in the UK for 2017 have fallen from 1.9% down to 1.7%, along with a drop of 0.1% for 2018 also.

There is also talk of a ‘Brexodus’ of banks from the UK due to fears of an difficult transition period once Brexit comes into full effect.

Moving forward the Pound to Canadian Dollar rate is likely to be driven by sentiment as well as data releases as investors watch closely in order to gauge how the UK is performing in the current period of uncertainty, and if you wish to be kept updated regarding short term price changes do feel free to get in touch.

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.

Will GBPCAD rise or fall?

The pound has really struggled today dragging GBPCAD down almost 3 cents as investor concerns over the economic outlook for the UK increase. The Bank of England reduced growth forecasts and withdraw previous support for an interest rate hike causing the currency to slide as largely expected. The GBPCAD rate had been moving closer to the 1.60 rate in the last few weeks but a much softer CAD had provided some short term relief for CAD buyers. If you have a transfer buying or selling CAD in the future then understanding the market and the drivers could help you secure currency at a better level.

Tomorrow there is further key economic data in the form of the latest US Non-Farm Payroll data which could easily see some big changes in market sentiment. There could also be some big changes domestically in Canada with the latest Unemployment and Labour statistics data from Canada. If we do see any big changes then the rates could easily shirt, previously there was a light expectation the Bank of Canada would raise interest rates further in line with their biggest trading partner the United States. However some softer news from the US and political worries have definitely made this less likely.

The CAD could easily weaken further against the pound perhaps by a couple of cents undoing much of the favourable news today for CAD sellers. If you have a transfer buying or selling the Loonie dollar then making some plans around such volatility is very sensible. For more information at no cost or obligation please speak to me Jonathan by emailing jmw@currencies.co.uk, thank you for reading and please get in touch for more information.

Will GBPCAD drop below 1.60?

The pound has really struggled today dragging GBPCAD down almost 3 cents as investor concerns over the economic outlook for the UK increase. The Bank of England reduced growth forecasts and withdraw previous support for an interest rate hike causing the currency to slide as largely expected. The GBPCAD rate had been moving closer to the 1.60 rate in the last few weeks but a much softer CAD had provided some short term relief for CAD buyers. If you have a transfer buying or selling CAD in the future then understanding the market and the drivers could help you secure currency at a better level.

Tomorrow there is further key economic data in the form of the latest US Non-Farm Payroll data which could easily see some big changes in market sentiment. There could also be some big changes domestically in Canada with the latest Unemployment and Labour statistics data from Canada. If we do see any big changes then the rates could easily shirt, previously there was a light expectation the Bank of Canada would raise interest rates further in line with their biggest trading partner the United States. However some softer news from the US and political worries have definitely made this less likely.

The CAD could easily weaken further against the pound perhaps by a couple of cents undoing much of the favourable news today for CAD sellers. If you have a transfer buying or selling the Loonie dollar then making some plans around such volatility is very sensible. For more information at no cost or obligation please speak to me Jonathan by emailing jmw@currencies.co.uk, thank you for reading and please get in touch for more information.