The first of the UK’s major figures is out this week in the form of Manufacturing PMI. This is a very good indicator of economic health and along with the other inflation measures, will give a clear indication of how the UK economy is currently performing. Anything above 50.0 indicates expansion and anything below, contraction.
Despite the positive forecast of 52.3 the actual figure was a very disappointing 50.8. This started the pound on the back foot today and anyone wanting Sterling to strengthen will be hoping the rest of the week’s numbers show more promising signs of growth.
Canadian GDP results
After some promising current account and raw materials figures yesterday, it could be signs that the Canadian economy is improving slightly. Today this was confirmed when the Monthly GDP results were released above the forecast, showing 0.2% growth. This was great news for anyone wanting to sell the Canadian Dollar, as it dropped over two points following this news.
Sterling to Canadian Dollar rates
If you have an up and coming currency requirement, the movements today will have changed the amount you pay dramatically. To put this into real terms, if you were to purchase £100,000 worth of Canadian Dollars, you would see a difference of well over $2000,00 CAD between the highs and the lows of just today.
If you would like to protect yourself against the exchange rates falling away, get in touch and speak with one of our dedicated brokers today. Opening a trading facility does not cost or obligate you in any way and only takes a couple of minutes online. Alternatively, if you just want a free quote on your currency purchase, complete the enquiry form or contact me directly on the details below.
What is still to come?
After the Manufacturing PMI from the UK today, we still have Construction and Services PMI to come later in the week. These will be closely watched and a poor result could make the Canadian Dollar a lot more expensive to buy.
We also have a speech by MPC members Broadbent and Cunliffe. Given how the currency markets like to move more on rumour than fact, if either give away any future plans the BoE may have to tackle the economic problems, we could see large swings in the exchange rates.
From Canada, the Trade Balance figure will make or break the Loonie this week. These are not expected to delight, so anything better then the forecast could boost the Loonie, against its counter parts.
Unless you have had your eyes and ears closed over the past few weeks, you will know that the EU referendum in the UK and on going issues in Europe, will be dominating the headlines. If the UK decides to leave the EU, some analysts are predicting the pound could have 40% wiped off its value overnight. Whether you believe this or not, it may be very wise to speak with one of our specialists to find out how you can protect yourself against any negative movements in the currency markets. Contact me directly or complete the enquiry form.