What can we expect next for the GBPCAD exchange rate?

The GBPCAD rate has recently risen presenting some excellent short term opportunities to buy the CAD. This has occurred completely against the grain of expectation as the sinking pound does appear to be on course for further losses. All in all I would not be gambling on GBPCAD rising much higher but the recent switch of sentiment, partly as the price of Oil falls is presenting a much better opportunity.

All in all the Canadian economy is performing well and they have raised interest rates over there in line with their major trading partner the United States. With US GDP having risen yesterday the future is looking positive overall for the Canadian economy. Canada is on a path to raising further their interest rate, what central bank policymakers will call ‘normalisation’. After years of low interest rates and loose monetary policy globally policymakers are gently returning to normal levels of interest rates.

Normalisation is not something that can really be associated with the UK as the last move on interest rates was down. The expectation for the future is a worsening economic condition for the UK, things are not going to be ‘normal’ anytime soon this side of the Atlantic. With no deal on Brexit forecast until a year at the earliest we might see the pound test the lows on GBPCAD of 1.52 from 2013.

If you are holding pounds and buying any currency life will be difficult but tracking the better levels is the best way forward. I think buying on the current spike makes real sense for any clients who need to buy the Loonie this side of Christmas.

Thank you for reading this post and I look forward to hearing from you to discuss, please email me on jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from and assisting you in the future.

GBP CAD Exchange Rates Break 1.63

The Canadian dollar is seeing heightened volatility this week as the impact of Hurricane Harvey is also seen on the Canadian dollar as well as US dollar. The price of oil has fallen after Hurricane Harvey hit the state of Texas and a number of oil refineries have been forced to close.

Considering this was the biggest hurricane that has hit the state for fifty years and the sheer size of the Texas economy means that repercussions are going to be felt elsewhere. It has been reported that 20% of the US oil refining capacities have been shut down this week. The Canadian dollar is impacted directly as a result of changes in the price of oil considering its large oil exporting capacity hence why the additional volatility this week and additional weakness for the Canadian dollar.

GBP CAD has rallied almost 1% on today’s trading with rates for this pair sitting at 1.63 which has presented those clients looking to buy Canadian dollars with a small improvement in the exchange rates available. The Brexit negotiations which have recommenced this week will take centre stage and will continue to be the single largest driver for sterling exchange rates.

Any signal of a future trade deal between Britain and the EU could see a quick turnaround for the pound and potential considerable strength. We are not there yet judging by this week’s talks between Brexit secretary David Davis and EU negotiator Michel Barnier where it appears that negotiations have hit something of a stalemate. The issue over the divorce settlement continues to keep pressure on the pound.

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

CAD weakness because of oil prices

The Canadian dollar has lost value against all of the major currencies this week due to the decline in oil prices. Oil has taken a hit following Hurricane Harvey as it is being reported that 20% of oil refineries have been shut down due to the flooding. Regular readers will be aware that oil prices and Canadian dollar exchange rates have a direct correlation. When oil prices fall the Canadian dollar’s value falls and vice versa.

In regards to GBPCAD exchange rates before the flooding it looked like GBPCAD would break through 1.60 however the market has moved away from these levels. Looking further ahead I still believe a shift through 1.60 is likely. By all accounts Brexit negotiations are not going to plan which is causing problems for sterling exchange rates.

Tomorrow Canada are set to release their GDP numbers for the 2nd quarter. The quarterly figure is expected to be released at 3.7% which is the same as previous. If this materialises I expect Canadian dollar exchange rates to remain buoyant at current levels. However any deviation could cause a volatile afternoon.

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! **

 

Canadian Gross Domestic Product Next Week Could Boost CAD (Ben Fletcher)

The GBP/CAD  rate has been on a steady decline over the last 20 days seeing the the rate dropping from 1.66 to 1.60. The steady decline in my opinion can be attributed to CAD strength as much as Sterling weakness. The Bank of Canada recently raised interest rates from 0.5% to 0.75% and their is optimism that there will be further hikes in the near future. There needs to be further improvement in the economy and any jump in inflation levels will be considered extremely positive.

Next week the latest Gross Domestic Product data will be released and following better than expected Retail sales this week there could be growth on the cards. The latest inflation reading in the last few weeks was also positive which gives indication that a fall into the 1.50’s is very close. If you do have a requirement to purchase Canadian Dollars then it might be worth considering doing something sooner rather than later. Alternatively Canadian Dollar sellers could close to moving into year highs in the next couple of weeks.

The price of oil also has a major impact on the Canadian Dollar and most of the oil producing nations are playing ball and stick to production restrictions. The price has started to settle with fluctuations coming to a minimum, in short all the data points towards Canadian Dollar strength over the next few weeks with the GBP/CAD inevitably falling below 1.60.

If you do have a question with regards to my forecast please get in touch. 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 at brf@currencies.co.uk

Will Brexit concerns continue to drive GBP/CAD downward? (Joseph Wright)

The Pound to Canadian Dollar exchange rate has continued its downward trend during today’s trading session, and I think it will be interesting to see whether 1.60 manages to act as a support level or not moving forward.

The lowest level the pair have hit today is 1.6014 so the key level is getting closer.

Sterling is generally under pressure at the moment but it has been helped today after UK GDP figures for July showed an improvement at a time when many are concerned that the UK economy is beginning slowdown.

With regards to other major currency pairs some key psychological levels have been breached in recent weeks, with GBP/EUR falling below the long-standing 1.10 support mark so those planning a GBP/CAD transfer and hoping the Pound climbs need to be aware of this as sometimes it can be good to compare how currencies are performing across the board.

There are no major economic announcements scheduled out of the UK or Canada for the rest of the week so I expect the pair to continue to be driven by sentiment which may not work in the favour of Sterling, although with the North American Free Trade Agreement (NAFTA) being put under the microscope by US President Donald Trump the same applies for Canada, especially if Trump makes any more unexpected negative comments on the agreement.

Next week Canadian GDP figures will be released on Thursday so that would be another reason for the GBP/CAD pair to experience some price movements.

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 the pound rise or fall against the CAD in the coming weeks?

The pound is looking like it will only struggle further against the Canadian dollar as we get closer to the reality of the Brexit. Brexit uncertainties are probably not a surprise to many reading this blog, you might even be bored of hearing about them but if you are concerned with the pound and the Canadian dollar on any form of transaction, it is a reality you will need to face up to.

The pound looks like it could well drop much further as politically and economically the pound suffers dragging GBPCAD lower and lower. Of course the Canadian currency itself is also performing much better this year being on a loose path to raising interest rates and also as its largest trading partner, the US continues to grow.

Of course there are big challenges ahead for the Canadian economy, namely will the price of Oil remain supported? Will Trump’s efforts to tear up NAFTA (North American Free Trade Agreement) bring misery for the Canadian economy? Such questions pose a big challenge for the GBPCAD rates at the moment, if you have a transfer to make buying or selling the Canadian dollar in the future then understanding the market and all of your options is crucial to getting the best deals.

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

Could further Interest Rates be on the cards from the Bank of Canada? (Daniel Johnson)

Is CAD destined for further gains against Sterling?

The Canadian Dollar has strengthened significantly against the pound following the recent interest hike from 0.5% to 0.75%.  We have recently seen a rise in Consumer Price Index (CPI) data. CPI measures changes in the price level of a basket of goods and services purchased by households, it is a key measure of inflation.

This was one of the catalysts for the Canadian dollar strengthening over Sterling now GBP/CAD sits in the 1.60s. The best levels for Canadian sellers since January. Since May the Canadian Dollar has moved from strength to strength it is not just the terrible state of affairs in the UK which is causing CAD strength. There could indeed be further interest hikes from the Bank of Canada as growth continues.

The expectations of a further rate hikes and higher oil prices definitely bodes well for the Loonie.

If you have to buy Canadian Dollars with Sterling it may be wise to take advantage of current levels as there is little basis for any significant rally at present.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker when the market is currently so hard to predict. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving.  I can be contacted at dcj@currencies.co.uk . (Daniel Johnson) Thank you for reading.

Canadian Dollar Gains on Positive Canadian Outlook

The Canadian dollar continues to be supported on positive economic data with rates for CAD GBP sitting close to an eight month high. A recent rally in the price of oil as a result of a production cut by the Organisation of Petroleum Exporting Countries (OPEC) combined with stronger inflation numbers are all helping drive the price of the Canadian dollar higher.

After the Bank of Canada raised interest rates in July the Canadian dollar has remained very buoyant and there are question marks as to when there may be another interest rate increase from the central bank. Should the Bank of Canada hike rates then the Loonie could see additional gains across the board. There is reasonable chance there could be a rate hike later this year. There is currently an excellent opportunity for any client looking to sell Canadian dollars in to pounds and this opportunity may not last for too much longer if the pound starts to recover from its poor performance over the summer.

Clients with a pending requirement would be wise to get in touch sooner rather than later to consider their options. Although the outlook for the UK is very uncertain at present, largely as a result of Brexit there is a strong chance that as clarity is eventually offered on Brexit then the pound could see material gains. However there is still some way to go in the Brexit negotiations which will probably take another 18 months which means an extended period of uncertainty for GBP CAD exchange rates.

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

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.