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UK Inflation increases strengthening the pound
This morning we saw the first of the meaningful data effecting the GBP/CAD cross. This was in the form of UK CPI numbers. CPI or Consumer Price Index, shows the change in price of goods purchased by consumers over the past twelve months. This is by far the most important piece of inflation data as it is used for the Bank of England’s inflation target and therefore has a large effect on the price of sterling.
The latest numbers show growth of 0.5% for the year, compared to the 0.3% forecast. This moved the GBP/CAD exchange rates up over a point to highs of 1.8440, making it cheaper to buy the Canadian dollar.
Bank of Canada Interest rates
Tomorrow the first of the real news of the week, effecting the Loonie is announced, as we have the latest interest rate decision from the Bank of Canada. It is widely expected to be kept on hold but with ever growing concerns about the recovery of oil prices and a lagging economy, it would not be a complete surprise to see them cut rates further.
If the BoC change the interest rates in any way or even just indicate they may do so in the future, it will have a huge effect on the price of the Canadian dollar.
Need to buy or sell a currency?
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T: 01442 892 060