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GBP/CAD Forecasts March 2016
After a disappointing day for the Canadian Dollar crosses yesterday, we saw GBP/CAD prices fall from the mid 1.88’s down to around 1.87 off the back of some impressive Canadian Manufacturing data. This couple with the Annual Budget in the UK, weakening off the pound caused the fall in prices, making it more expensive to but the Loonie as GBP/CAD forecasts were revised.
Overnight news from the US caused the trading levels to drop further as Canada benefited from the very doveish tones from the FED. Sterling to Canadian Dollar rates then fell further, continuing into this mornings trading where they bottomed out around 1.8550.
To put these movements into real terms, if you were to make a transfer of £200,000 you would receive over $6000 less this morning, than the same trade yesterday afternoon.
This just outlines the importance of staying in touch with your account manager so they can keep you up to date with any of the market movements and news affecting the price of your currency.
If you would like to find out more information about how we can help you, complete the enquiry form today or call me directly on the details below.
BoE causes rebound
This fall in exchange rates was not to last, as there were several important releases from the Bank of England today. We had the latest interest rate decision and minutes from the MPC meeting, outlining how the nine members voted with regards to interest rates and stimulus packages.
The vote came as no surprise with a unanimous vote to keep interest rates on hold at the record low of 0.5% for another month running. The news that has caused the jump back in rates was actually within the minutes.
In general the tone of the minutes were quite positive but what caused the majority of the movement was comments from Mark Carney. He said he had no intention of following in Europe’s and Japan’s footsteps by introducing negative interest rates.
This gave investors faith in the Pound and the GBP/CAD exchange rates recovered its overnight loses to just below 1.89.
GBP/CAD 24 hour graph
What will move the GBP/CAD forecasts
Tomorrow there is still plenty to move the markets and change the amount you are paying for your currency. We kick the day off with some minor data from the UK in the form of the Quarterly bulletin. This will have a muted effect as the main bulk will have been announced with today’s data.
Canada has a bit more weight behind it with some more influential data to move the exchange rates from Core CPI data and Core Retail Sales. These will give a good indication of the health of the Canadian economy and could move the exchange rates if the actual figures stray too far from the forecasts.
If you have a currency requirement, we could help save you money. We offer exchange rates up to 5% better than the high street banks and allow you to lock into a rate of exchange for up to two years into the future. This allows you to budget effectively, ensuring you don’t get any nasty surprises if the exchange rates move.
Opening a trading facility does not cost or obligate you in any way and only takes a few minutes online. Alternatively, if you just want a free quote on your currency purchase, complete the enquiry form or call me directly on the details below.
T: 01442 892 060