Best time to sell CAD
It has been an extremely volatile week in the forex markets and now may be the best time to sell CAD. Sterling to Canadian Dollar exchange rates have fluctuated between 2.0350 at the high to lows of around 1.9870. To put this into monetary form, a typical transfer of £200,000 would see you receive a difference of around $9600 CAD between the highs and the lows of the last couple of weeks.
The rates have dropped off dramatically over the past week so if you are looking to sell Canadian Dollars any time soon, you would struggle to find a better time to do so.
If you would like a free, no obligations quote on your currency purchase, contact me directly on the details below.
What has caused the GBP/CAD rates to fall?
It has been an abysmal week for Sterling across the board with several releases and speeches affecting the exchange rates. Firstly was the banks stress tests. There were actually only two of the major banks failed to meet the stress tests but this was seen as minor and only had a moderate effect on the exchange rates.
Later the same day we had a speech by BoE Governor Mark Carney. In this speech he stated they would be very unlikely to follow the US suit and raise interest rates any time soon. Saying there were many tools to use as well as interest rates and with UK inflation still around zero, there is little argument for a hike.
The real damage to the Pound was done Tuesday afternoon when the latest Manufacturing figures were released. These came in well below forecast at 52.7, which weakened off Sterling further.
The march on sterling was slowed when later that day, Canada released its latest GDP figures. These were forecast to show expansion but the actual figure showed a negative 0.5%. This was enough to stall any major falls in the GBP/CAD exchange rates.
After the Bank of Canada kept interest rates on hold for another month running on Wednesday as predicted, which kept the markets fairly quiet, we have had the most volatile day today. After further inflation data in the form of Services PMI from the UK were released above forecast, Sterling started to strengthen.
This was very short lived as the speech by ECB president and Fed Chair, Janet Yellen caused huge movements in the global currency markets and the Pound started to free fall against its counterparts.
What will move exchange rates next?
We end the week with several pieces of data that could move the markets. There is very little data of note from the UK but Canada will release Employment Change, Trade Balance figures, Unemployment rate and finally Labour Productivity. These all have the power to move the exchange rate greatly.
If you would like to find out more about how these releases may effect your currency purchase, contact me today on the details below.
Do you want better rates of exchange?
If you are looking for better rates of exchange, open a free, no obligations trading facility today. We offer exchange rates up to 5% better than the banks and have various contracts to suit every need.
Opening a trading account only takes a couple of minutes online and does not cost or obligate you in any way. Alternatively, if you just want a free quote on your currency purchase, contact me directly on the details below.
T: 01442 892 060
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