As everyone gets back to work and normality this week, lets look at how the GBP/CAD exchange rates have been performing and what up and coming events and data releases, may affect your currency purchase in the coming week.
Sterling to Canadian Dollars 2016
The UK kicked things off on Monday with some Manufacturing PMI data. Although this was slightly below the forecast, at 51.9 it still showed solid growth and started the year off nicely for the Pound.
Today the good news continued for Sterling, as the next round of inflation data in the form of Construction PMI was released. This came in well above the forecast of 56.1 and actually came in at 57.8. This was great news for the UK economy as it builds a case for the Bank of England to raise interest rates.
Looking at the rest of the week, one of the most important days will be Wednesday. This is when we will see another important gauge for economic health, in the form of Services PMI. If this also beats the predictions we could see the Pound benefit off the back of this.
We also have the first piece of significant data from Canada. This shows the difference between imported and exported goods, during the last month. Canada is currently digging itself out of a hole and merely aiming at reducing the deficit, rather than stretch its legs. The forecast is for a negative 2.6bn. This would be an improvement from the previous reading of -2.8bn.
Thursday is looking quiet on the data front from both sides of the GBP/CAD cross but there will be a speech by Bank of Canada Governor Mark Carney. The tone of this speech could have a large effect on the exchange rates if he seems particularly bullish or bearish about the Canadian economy.
We end the week Friday with several pieces of influential data from Canada, starting with monthly Building Permits, followed by Employment change and the Unemployment rate. The building permits will give a good indication of future construction and building activity and gaining a permit is often the first stage. The Employment numbers will give a good overall picture of Canadian economic health.
Where are the exchange rates heading?
If you would like more information on how these releases may effect your currency purchase, get in touch with one of our knowledgeable brokers on the details below.
Any piece of economic data or political event can move the exchange rates dramatically. This means no one can say for definite, which direction the exchange rates are heading and when. However with the Canadian economy struggling and the prospect of an interest rate hike in the UK on the horizon, the evidence says the GBP/CAD exchange rates should rise.
A word of warning to those wanting to wait for the rate to get higher. Over the past few years we have repeatedly heard the BoE would raise rates within a few months. This has repeatedly been pushed further and further back and could just as easily do so again. With our biggest trade partner, Europe still facing difficulties and wage growth stagnant, the attitudes could soon change and plans put back.
With the current exchange rates sitting near an eight year high, meaning you are in a very good position to buy the Canadian Dollar.
Are you buying or selling a currency?
If you have an up and coming currency requirement, get in touch today. Opening a trading facility with Foremost Currency Group does not cost or obligate you in any way and should only take a couple of minutes online. Just click the link and get started today.
No matter what your requirement we can help save you money on your currency purchase. Whether you are paying foreign suppliers, buying a property abroad or just topping up and overseas account, we have various contracts to suit every need.
If you would like more information about how we can help you or you just want a free quote on your currency purchase, contact me directly on the details below today.