Canadian bank due to keep interest rates on hold causing the Canadian Dollar to weaken

After having a good run the Canadian Dollar has started to fall against the Pound after an interest rate hike in Canada appears now to be less likely. Bank of Canada governor Stephen Poloz has suggested that any rate hike may not be coming in the near future.

Canadian inflation is currently close to a three year high at the moment and as high inflation is one of the key responsibilities for a central bank this would typically put pressure on a bank to consider raising interest rates.

However, Poloz put paid to rumours of a rate hike by saying that although he expects inflation to remain above 2% the current levels are not too much of a concern.

The Pound has once again rallied towards 1.80 and I would not be surprised to see this figure break through during the course of this week providing better opportunities to buy Canadian Dollars at a higher rate at the moment.

Meanwhile turning the focus back to what is happening in the UK it appears as though the Bank of England may be gearing up for an interest rate hike to come in the future.

With the Bank of England due to meet on 10th May we could see another rate hike coming according to MPC member Michael Saunders who was one of the two who voted for a rate hike at the previous meeting.

Average Earnings have now surpassed inflation and with UK unemployment close to its lowest level on record the central bank have enough evidence to hike rates but the question is whether we’ll see one in the next fortnight. If we see a rate hike or support in favour of hiking rates soon then I think we will see the Pound continue to make gains vs the Canadian Dollar.

Having worked in the foreign exchange industry for 15 years for one of the UK’s leading currency brokers I am confident not only of being able to save you money when converting Canadian Dollars but also help you with the timing of your transfer.

For further information or a free quote then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Will GBPCAD break 1.80 this week?

The pound to Canadian dollar exchange rate has seen a big twist and turn lately as the market struggles to price into expectations the changes in sentiment towards both the Canadian dollar and the pound. The Canadian dollar has risen as investors feel a stronger and higher price of oil will boost the Canadian economy in the longer-term.

The pound has also struggled as investors step back from the high expectations that have been placed into the market relating to interest rates. The general belief is that the Bank of England will raise interest rates in the future but we could see the pound falling further should the BoE signal that further hikes after May are now less likely.

Other areas of importance on the GBPCAD rate are the NAFTA (North America Free Trade Agreement) talks where Donald Trump’s views on trade with Canada bear weight. The general impression has been that the talks would prove fruitful which will ultimately see the Canadian dollar perform better as investors have more reasons to believe in the strength of its strong trading relationship with the USA.

Wednesday evening sees Stephan Poloz, Governor of the Bank of Canada give a speech on monetary policy. There have been expectations that the BoC would raise interest rates further in the future, this would see the Loonie dollar gain further. GBPCAD could have a busier end to the week with UK GDP data released on Friday too.

If you have a transfer buying or selling pounds or Canadian dollars then please feel free to contact myself Jonathan Watson by emailing jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from you.

What can we expect next for GBPCAD exchange rates?

The pound to Canadian dollar has changed dramatically in the last month principally as the Canadian dollar strengthens on the back of a much higher price of oil. The expectation is that the price of oil could rise even further in the coming weeks as investors strive to recalculate the overall values given new information on where this important commodity may go.

Canada’s main export is oil which is why the value of the Loonie dollar is so heavily influenced by changes in the price of this valuable commodity. Future projections are for a higher oil price and with us also learning of further information on interest rates too, there is a real possibility that we could in the future see the pound to Canadian dollar rates fall further.

Another concern we need to beware of for anyone holding pounds buying the Canadian dollar is the prospect of a NAFTA (North Atlantic Free Trade Agreement) deal being reached in the coming months. Any signs that a deal is being reached soon would see the Canadian dollar rise in value so clients looking to buy Canadian dollars with pounds should be treading very carefully hoping that the pound will rise.

GBPCAD levels have also slipped because it is looking less likely the Bank of England will raise interest rates since economic data this week has raised some fresh concerns about how much of a good idea that is. If you are looking to buy Canadian dollars in the future with pounds then making some plans in advance is worthwhile to try and mitigate the uncertainty.

GBPCAD could now struggle to get back above 1.80 if you are looking to buy or sell Canadian dollars making some plans sooner than later is probably the best bet. For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

Canadian Dollar Boosted on Bank of Canada Outlook

The Canadian dollar has received a boost after Bank of Canada governor Stephen Poloz hinted at further interest rate increases after he said that wage growth is forecast to start rising which would be seen as good for the Canadian economy. However he highlighted that the ongoing NAFTA negotiations are holding back the Bank of Canada from making any sudden decisions as uncertainty still remains.

There is some hope that a deal will be arranged and there is pressure from Mexico to have this wrapped up sooner rather than later ahead of elections in the summer. In my view if an agreement can be reached then this should bode very well for the Canadian dollar and the currency should make some material gains on a good deal. Clients looking to sell Canadian dollars are seeing some much better opportunities and there may be some more mileage in this rally.

GBP CAD

The pound has fallen sharply against the Canadian dollar with rates falling well below the 1.80 threshold for the GBP CAD pair. The sudden drop followed weaker than expected Consumer Price Index inflation data for the UK which saw inflation fall to 2.5% in March down from 2.7% in February. Whilst the numbers are not especially worrying it does raise question marks as to whether or not the Bank of England will in fact raise interest rates at the next policy meeting in May.

Until the now the markets had largely priced in the prospect of a 0.25% interest rate increase. However this seems less likely and the vote by the Monetary Policy Committee may be closer than initially expected which could see interest rates remaining on hold for a while longer and keeping the pound under some pressure.

For more information on the Canadian dollar and how these events may impact on your own requirement then please get in touch with me at jll@currencies.co.uk

Bank of Canada leave interest rates on hold

This afternoon the Bank of Canada left their interest rate on hold at 1.25%. At the press conference Governor Stephen Poloz seemed to be fairly upbeat as he confirmed interest rates could be hiked in the upcoming months as he expects a boost from increased foreign trade and higher wages in the upcoming months. However the Governor did announce that the uncertainty surrounding the NAFTA agreement is still a concern even though the prospects of a revamped NAFTA agreement looks more likely.

Earlier in the week the Canadian dollar performed well due to oil prices reaching a three year high and oil is Canada’s largest export and inflation remains above the Bank of Canada’s 2% target. Canada are set to release their latest inflation numbers Friday at 12.30pm and investors will watch this closely. If its the case inflation rises up to 2.3% from 2.2% I expect an interest rate hike will occur at the next meeting on May 30th. At present the consensus is that there is more than a 50% chance.

In regards to the NAFTA agreement, earlier in the week Vice President of the US Mike Pence  stated that a deal could be struck in the upcoming weeks and I believe his comments were reflected in Governor Stephen Poloz tone. If an agreement is struck in the upcoming weeks or months this can only be good news for the Canadian dollar and we should expect to see a period of Canadian dollar strength.

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! **

CAD Forecast – BoC Interest Rate Decision Unlikely to Boost CAD’S Value (Mattew Vassallo)

Any clients with a short-term CAD currency exchange requirement will be keeping a close eye on Wednesday’s Bank of Canada (BoC) interest rate decision and subsequent monetary policy statement.

The BoC are expected to keep rates on hold at 1.25% and with economic uncertainty around the Canadian economy at record highs, I would be very surprised to see a rate rise even muted under current market conditions.

The CAD itself has been under increasing pressure for much of 2018, with heavy losses against Sterling and the USD.

The silver lining for those clients holding CAD is that is has founds some support against Sterling around 1.83 but has yet to make a significant move back below 1.80.

Whilst President Trump’s stance has softened somewhat in recent weeks in regards to the on-going talks regarding the NAFTA deal, which are likely to be key to Canada’s economic well-being, there are still some serious concerns amongst investors in regards to the global trade wars and the negative effects this could have on the Canadian economy.

Canada is heavily reliant on global trade and any tariffs imposed by the US or countries trying to counter Trump’s measures, could seriously impact exports, in particular crude oil. Exports of crude oil have already been hit by the significant drop in prices across the globe and any further downturn in this sector could have serious ramifications for the Canadian economy and ultimately the CAD.

Those clients with a GBP/CAD exchange to make will also be very interest in tomorrow’s UK unemployment rate and average earnings data.

Any further improvement in these and we could see further rumours a rate rise by the Bank of England (BoE), which would likely boost GBP/CAD rates over the coming days.

Personally, I would be looking to take advantage of the improvement seen for the CAD over the past few days, especially when we consider all the potentially negative variable mentioned above.

If you have an upcoming CAD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

When is the best time to buy Canadian dollars?

The pound to Canadian dollar exchange rate had been improving at a rapid pace, improving in 2018 by over 14 cents presenting some of the best rates to buy Canadian dollars since the Referendum. The overall expectations for the pound are to see further improvements as we get further clarification on the Brexit and also interest rates.

The Canadian dollar has been strengthening owing to the rising price of oil which has seen the Canadian dollar strengthen owing to oil being one of its major exports. The general fluctuations in the Canadian dollar can be directly linked to the price of Oil and the value of other exports from Canada. As a commodity-based currency, the Loonie dollar will fluctuate too owing to global concerns surrounding worries and fears over the global economy.

If you are looking to buy or sell Canadian dollars for pounds then targetting the very best rates of exchange in the future will be largely determined by some of the recent developments on Brexit and interest rated for the UK. For the Canadian dollar we need to look more closely at the Bank of Canada and understand better their views on possibly raising interest rates.

The BoC did raise interest rates last year which had seen the currency much stronger, the reduced pace of hikes has been another contributing factor to seeing the Loonie dollar softer. However, it is believed there could be further hikes in the future, if you are looking to buy or sell the Canadian dollar this is something to be aware which could strengthen the currency.

With so many reasons to be cautious about future developments in the currency markets concerning the Canadian dollar, getting as much information and news as possible might be helpful to help you make an informed decision about when to execute any exchange. To learn more please contact me Jonathan Watson by emailing jmw@currencies.co.uk

CAD Forecast – Positive Employment Data Helps to Boost CAD’s Value (Matthew Vassallo)

The CAD has found plenty of support against Sterling over the past week, hitting 1.7946 at today’s high.

This move back below 1.80 has brought some much needed respite to those clients with upcoming CAD currency positions to execute, having seen the Loonie marooned above this threshold over recent months.

This improvement has come in line with a positive run of economic data, which including March’s employment figures. These confirmed that 32,000 jobs had been added to the Canadian economy last month, keeping the current unemployment rate at 5.8%, which is a record low.

These figures helped drive investor confidence, which may otherwise have been dented following the news that Canada’s economy contracted by 0.1% in January, which suggests that first-quarter growth figures are likely to be underwhelming.

A sharp drop in oil prices and concerns over the NAFTA agreement and global trade has put pressure on the CAD, which has struggled to make any sustainable impact against the Pound and other major currencies so far this year.

Whilst there has been some progress in NAFTA talks recently, it is still unclear what economic restraints the US may put on Canada and what potential knock on effects this could have on the Canadian economy.

This negative feeling was accentuated by President’s Trumps proposed trade tariffs and current internalisation, which has the potential to have devastating effects on the global markets. These will potentially slow global trade, which in turn is likely to hurt commodity based economies such as Canada’s, which relies heavily on its exports.

With so many potentially negative variables to contend with over the coming months, I would be tempted to take advantage of the current spike, for anyone looking to exchange CAD currency positons over the coming weeks.

If you have an upcoming CAD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

Canadian Dollar Strength on Positive NAFTA News

The Canadian dollar has bounced back strongly with good gains across the major currencies including the pound. The Canadian dollar strength has come about after it has been reported that Canada will be largely exempt from the majority of the major changes in the NAFTA agreement which is still being negotiated after many months of uncertainty.

The news is welcome for the Canadian economy knowing that trade will continue in a positive manner and gives some reassurance to the Canadian dollar. Rates for GBP CAD have now fallen from those highs of 1.83 to levels in the 1.78’s at the time of writing creating a much better opportunity for those clients looking to sell Canadian dollars.

The NAFTA news is so welcome that there may be more room in the Canadian dollar rally. Data released yesterday saw a widening in Canada’s trade deficit but the markets shrugged off the numbers on the strength of the positive NAFTA news.

This afternoon sees employment and business confidence numbers released which could create some added volatility for the Loonie. The Bank of Canada will be keeping a close eye on the economic data to try and decide when to next raise interest rates. Any positive numbers will only suggest the Canadian economy can weather further a further rate rise and this too should help the Canadian dollar strengthen.

Clients looking to buy Canadian dollars may now struggle to reach those recent highs we have just encountered and may wish to consider securing sooner rather than later to avoid potential disappointment. The outlook for the Canadian dollar is suddenly looking much brighter and this could prove beneficial for those clients looking to sell Canadian dollars.

For more information on Canadian dollar exchange rates and assistance on making transfers either buying or selling Canadian dollars then please contact me at jll@currencies.co.uk

Loonie strengthens due to NAFTA negotiations

Yesterday morning the Canadian dollar made substantial gains against the US dollar as reports were released that the White House want to put forward a preliminary NAFTA framework on the 13th April at the Peru summit. Any news that President Donald Trump will not be scrapping the NAFTA agreement is good news for clients selling Canadian dollars.

For news as it unfolds and how it is impacting your currency pairings feel free to email me on drl@currencies.co.uk to lodge your requirements.

In other news Canada are set to release their latest Net Change in employment and Unemployment rate numbers Friday afternoon. Net Change in unemployment is set to rise to 20k. A rise in net change is seen as positive for the Canadian dollar therefore this release could give the loonie a slight boost. Unemployment is set to remain at 5.8%.

Later in the month the Bank of Canada (BoC) are set to release their latest interest rate decision on 18th April and this release could indicate how Canada believe the NAFTA negotiations will pan out. Last month the BoC announced that they wanted to raise interest rates but the volatility surrounding NAFTA prompted the BoC to make no monetary policy changes at present. If the BoC raise rates this month, I believe this indicates a deal with Trump is on the horizon and we could see a period of Canadian dollar strength.

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! **