Canadian dollar exchange rates rise

Richard BeaumontWritten by:
Richard Beaumont
T: 01442 892 060

Canadian dollar exchange rates rise

Today we have seen the Canadian dollar exchange rates rise after falling against sterling over the past few days. In today’s report we will look at what has caused this and what may still effect the amount you pay for your currency this week. The morning’s trading started in the 1.83’s mid market but had recovered throughout the day to just under 1.86 once again.

GBP/CAD exchange rate graph

Canadian Dollar exchange rates rise

Canadian Building Permits boost the Loonie

Today we saw the latest Canadian Building permits figures. This is a very good indicator for future construction activity, as gaining a permit is the first step of any construction project. An improvement in this would mean good news for many sectors further down the line. It was forecast to show good expansion of 4.7%. After the previous figures came in at a negative -9.5%, another poor result or missing the forecast could have damaged the Loonie.

This however was not the case as the actual figure came in at an impressive 15.5% growth. This gave the Canadian dollar a well needed boost but it only managed to stop the march from sterling briefly before they continued to rise.

Sterling Strength

There have been no major releases today but a combination of several factors giving the pound strength. This morning we had the latest House Price Index numbers. These showed the average house price rose 2.6% in the last month alone. We also had a Bond auction which faired well for the pound.

One other factor influencing the price of the pound is more political. This morning we saw the results of the Dutch vote whether to extend the EU to include Ukraine. The Dutch people voted against this, partly over fears it would open the borders to another 44 million people from a war-torn country.

After the result the no vote made “Brexit” fans rub their hands together with joy, as it builds the case that the EU, although achieving many great things over the years, is no longer fit for purpose. Although sterling has weakened off recently over the uncertainty of staying in the EU, the news seems to have actually strengthen the pound. Maybe these are signs that people are starting to believe leaving the EU may be the stronger position.

How to protect yourself when the markets move

When the markets are moving around as much as they are, it can be almost impossible to pick the best time to buy your currency. If you have agreed to buy a property abroad or purchase foreign goods, unless you have secured the domestic currency, the amount you pay is changing constantly.

With the use of a forward contract, we allow you to lock into a rate of exchange for up to two years into the future. This allows you to budget effectively within your time scales.

If you would like more information about how we may be able to help you or just want a free quote on your currency purchase, complete the enquiry form or contact myself directly on the details below. Alternatively, click the link to open a free, no obligation trading facility and get started today.

Richard Beaumont
T: 01442 892 060