GBP/CAD falls after Trade Balance figures

Richard Beaumont GBP/CAD falls after Trade Balance figuresWritten by:
Richard Beaumont
T: 01442 892 060
E: [email protected]

GBP/CAD falls after Trade Balance figures

Today we finished the week with some much better than expected figures from Canada. The latest trade balance figures were forecast for a negative -1.0Bn but the actual numbers showed only -0.7Bn. Labour productivity was also better than expected at 0.1%.

This news caused the rise in Sterling to Canadian Dollars to stop and dropped back around half a point towards 1.89, making it more expensive to buy.

Promising signs from the Canadian Economy

There have been many promising signs from the Canadian economy this week. Current Account Figures, RMPI, IPPI, started the week all beating forecasts. This was followed by much better GDP figures and now Trade Balance figures all showing signs of growth.

When you couple this with the recovering oil prices, the Canadian Dollar has seemingly ended its run of bad luck and has started to gain some of the recent lost ground against both Sterling and the US Dollar.

Trouble for sterling and Dollar ahead

Both Sterling and the US Dollar have made huge gains against the Loonie over the past year. This run may be coming to an end soon and both the UK and the US have up and coming political events that could cause a great deal of uncertainty.

In the UK we have the EU referendum in June and the build up to this vote will cause a great deal of uncertainty over the coming months. Experience has taught us that uncertainty causes volatility and normally a great deal of weakness. Some leading banks are predicting 20% to be wiped off the value of the pound instantly if the UK decides to leave. This threat is making investors nervy and is something to be mindful of if you have an up and coming currency requirement.

Likewise, the US has the on going presidential candidate race. Given one of the main candidates is controversial to say the least, this could cause the Dollar to weaken. If Mr Trump gets close to power, the world would recall in horror at the possibilities ahead. Other than his controversial views, many suspect he would drive the American economy into the ground like many of his businesses in the past.

Buying Currency

Whether you are buying or selling a currency, we can help you save money. We offer exchange rates up to 5% better than your high street banks and allow you to lock into a rate for up to two years into the future. This allows you to budget effectively and not get caught out if the market moves against you.

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, contact me directly on the details below or complete the enquiry form.

GBP/CAD 7 day graph

GBP/CAD falls

Richard Beaumont
T: 01442 892 060
E: [email protected]