The sterling to Canadian dollar exchange rates have started on the back foot this week falling from 1.6480 to 1.64, mid market. This was down to sterling weakness rather than CAD strength as USD/CAD and EUR/CAD have remained fairly flat throughout the day’s trading.
Why have the GBP/CAD rates fallen?
Once again, today’s movement were down to political news as well as some economic data being released.
Firstly, we may be witnessing the first signs of a slow down since the historic vote to leave the EU. The latest figures show that growth in the service sector, which makes up the largest part of the UK economy, has started to slow.
Secondly, after the House of Lords sent the “Brexit Bill” back to parliament for revision, there is now fresh fears that Article 50 will not be triggered by the end of the month as planned. There will be another vote on Tuesday and any further amendments would delay things further. It is these delays that mean further uncertainty, which as many readers will know, has weighed heavily on the UK economy and price of the pound.
GBP/CAD exchange rate graph
What may affect the exchange rates this week?
Tomorrow we have the first meaningful data of the week in the form of Trade Balance figures. This shows the difference in value of imported and exported goods over the past month. This is forecast to show mild growth of 0.2%.
Wednesday we have some minor data in the form of Building Permits, Housing Starts and Labour Productivity. These are unlikely to have a large effect on the exchange rates but will give a good indication of future construction data.
Once again, Thursday will only bring some minor data in the form of the New Home Price Index.
Friday will be the day to watch out for as we have the latest Employment Change and the Unemployment Rate. This will give a very good indication of the health of the Canadian economy.
All of these have the power to change the amount you pay for your currency. If you want to find out how they might affect your currency purchase, request a free consultation today.
Buying Canadian Dollars
If you have an up and coming currency purchase, Forecast Currency Group can help you save money. We offer exchange rates much better than you bank or bureau de change and allow you to lock into a rate of exchange for up to two years into the future.
With various contract to suite your individual needs, whether you are buying a property abroad, paying foreign suppliers or just topping up an overseas account, we can help save you.
Click the link to open a free, no obligations trading facility today. Alternatively, if you just want a free quote on your currency purchase to find out how much you could save, request a free consultation or contact me directly on the details below.
T: 01442 892 060