Canadian Dollar trading range bound
The Sterling to Canadian Dollar exchange rates have been trading within a point range today, between 1.72 to 1.73, mid-market. With a bank holiday today in Canada, all movements are off the back of news and events from overseas.
Canadian data moving exchange rates
It is a quiet week as far as Canadian data is concerned with only some minor data out until Friday. We start the week with a Canadian Bank Holiday today, keeping markets fairly flat throughout the day.
Tuesday has some minor data in the form of Manufacturing PMI but this is not likely to have a large effect on the exchange rates.
Friday we will see the most important releases of the week, in the form of Employment Change, Unemployment rate and Trade Balance figures. Any change from the forecast figure could move the exchange rates dramatically.
Other data moving exchange rates
With little in the way of data from Canada this week, let’s look at what else may affect the price you pay for you currency.
As any regular readers will know the global glut in Oil has caused prices to drop dramatically, and as the Canadian Economy is so heavily reliant on its main export, this has weakened off the Canadian Dollar. Any further falls in prices could hurt the Canadian economy and move exchange rates dramatically.
One of the main events this week is the Bank of England interest rate decision on Thursday. It is suggested that the BoE could cut interest rates at their next meeting, following the “Brexit” vote. If they do go ahead, this would weaken off Sterling and the GBP-CAD exchange rates would fall, making it a lot more expensive to buy the Loonie.
We have recently seen that UK Unemployment is low, house prices are up, inflation is performing well and the health of the high street is good. So why would the BoE cut interest rates? The Brexit honeymoon period we find ourselves in, may not last and the latest figures show investor confidence is down and this could have a knock on effect further down the road.
Only time will tell if the nine MPC members believe the economy has taken a big enough hit to reduce the rates. Given they have many tools at their disposal before needing to at a cut in rates and the knowledge that this would hit the already fragile banks profits, I personally cannot see this happening at this early stage.
How to buy my currency?
If you would like to find out more information about how these events could affect the exchange rates you receive, speak with your dedicated account manager today.
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