Both Canadian Housing Stats and Building permits showed huge improvement today, beating forecasts by some margin. This was good news for the Canadian economy as it points to good construction figures.
Crude Oil figures helped the Loonie further as the results showed an increase of 8.2m barrels during the past month. Given Canada is so reliant on its oil sales, this was welcome news for the Loonie.
GBP/CAD exchange rate graph
What is still to come?
There will be some minor data in the form of the New Home Price Index out tomorrow but it will be Friday we see the next meaningful Data from Canada. This is when we will see the latest Employment Change and Unemployment rate. These will give a very good indication of the health of the Canadian economy.
As many of our regular readers will know, it is not just eco stats that you should watch out for. Any piece of political news could move the markets dramatically and in today’s uncertain times, it is wise to stay in close contact with your FCG account manager to keep one step ahead.
What will move the exchange rates next?
Tomorrow we have the latest building permits from Canada. Although these will not have the power to move the exchange rates too far, they are a very good gauge of future construction activity.
The Crude Oil inventories will be key to the price of the Loonie, as Canada’s main export has had a rough ride in recent times. A huge glut in supplies caused a crash in price per barrel and the Canadian economy suffered hugely.
The UK will be releasing its annual budget report. This is likely to be overshadowed by today’s House of Lords decision on the Brexit bill. If they chose to send the bill back for further amendments, it is likely to have a bad effect on the pound as it fuels further uncertainty, weakening the currency against its counterparts.
Buying your currency
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