GBP/CAD fall in 2015 after poor UK inflation figures
Sterling to Canadian dollar exchange rates have fallen from around CAD$1.80 to around the $1.78 level since the beginning of the year, meaning it has become more expensive to buy the Loonie.
There are two main factors that have caused this. Since the beginning of the year UK inflation has failed to reach the forecast figures, releasing any pressure on the Bank of England to raise interest rates in the short to medium term. Many now believe this may not happen until 2016.
Canadian data this week has not shown any major economic growth but, with the mixed news from the UK,GBP/CAD exchange rates have remained in the late $1.70s.
Low oil prices would be expected to have a negative effect on the Canadian economy but, with their dollar so weak, exports have increased to such an extent that they have more than compensated for this. Also energy prices have fallen dramatically, giving households more income to spend and in turn boost the economy.
Tomorrow’s data affecting exchange rates
The last of the week’s significant UK data will be released this morning, in the form of manufacturing production figures. If these are negative they will take further pressure away from the Bank of England to raise interest rates.
Tomorrow is also a big day for the Canadian Dollar – the afternoon will see the release of building starts, employment change and the unemployment rate numbers. These releases will give a good indication of the state of the Canadian economy and the future direction of GBP/CAD exchange rates.
Looking for the best rate for Canadian dollars?
If you’re looking to achieve the best exchange rates, contact the Foremost Currency Group today. If you don’t need your currency straight away, you can lock in a rate of exchange for up to two years into the future. This allows you to budget effectively within your chosen timescales, without getting priced out of the market by negative movements.
If you’d like to find out how much we could save you, contact me on the details below or open a trading facility today.
+44 (0)1442 892060