An eventful 24 hours for the Loonie

It has been an eventful day in the currency markets with various political and economical events changing the price you pay for your currency. GBP/CAD has risen this afternoon to highs of 1.6470, mid market. USD/CAD fell following comments from the Fed to lows around 1.3280. After the initial fall following news from the US, EUR/CAD has remained fairly steady around 1.4270.

GBP/CAD exchange rate graph

Screen Shot 2017-03-16 at 15.15.30

CAD and USD weaken following Yellen’s comments

Yesterday evening the US raised their interest rates by 0.25% to 1.00%. This would normally give the domestic currency strength. However, this turned out not to be the case, as both the USD and because of its close relationship, the CAD, weakened following this decision.

So, why did the exchange rates fall? This was down to comments made by Fed Chair Janet Yellen in the accompanying statement. It was widely expected that the US would raise interest rates yesterday, which was therefore priced into the market already. It was also expected that there would be a further three rate hikes this year. This however was contradicted by Janet Yellen when she stated there would only be another two rate hikes.

Vote for rate hike causes sterling strength

Today we had the latest interest rate decision from the Bank of England. As was widely predicted they left interest rates on hold at 0.5%. What did surprise many was that one of the nine MPC members actually voted for a hike.

This was the first sign that the economy may be turning a corner and future rate hikes may be on the cards. This saw the GBP/CAD exchange rates move from 1.63 to over 1.6450 in a very short space of time.

Confidence back in Euro after Dutch vote

The results for the Dutch election are out and Europe gave a sigh of relief as the much safer option of Mark Rutte won the day. With other key European elections approaching fast, this was a good barometer or the anti EU felling across Europe. This gave the single currency a little more confidence, stabilising the EUR crosses slightly.

Buying your currency

Using Foremost Currency Group for your currency purchase can save you thousands. We offer much better exchange rates than your high street bank or bureau de change.

We have various contracts to suit every need, so whether you are buying a property abroad, paying foreign suppliers or just topping up your overseas account, we can help you save money.

Opening a trading facility is completely free of charge and does not obligate you in any way. Just click the link to get started. Alternatively, if you just want a free quote on your currency purchase to find out how much you could save, request a free consultation or contact us directly on the details below.

Richard Beaumont - What has moved the exchange rates?Written by:
Richard Beaumont
T: 01442 892 060