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Surprise BOC Interest Rate Hike Sends CAD Soaring

Yesterday’s high: C$1.6205

Yesterday’s low: C$1.5843

CAD Surges after BOC Lifts CA Interest Rates to 1%

Against expectations, the Bank of Canada (BOC) raised interest rates to 1% yesterday afternoon, triggering a dramatic Canadian Dollar rally. The CAD/GBP exchange rate rose sharply to 0.6269, up by 1.2%.

UK news was conversely negative, with a leaked government document detailing plans to restrict access for EU workers into the UK after Brexit. This was met with concern by a wide range of UK organisations and businesses.

CAD Outlook: Further Gains Possible on Canadian Jobs Stats

As the dust settles from the BOC decision, the Canadian Dollar could make further gains against the Pound when today’s Ivey PMI comes out. Released in the afternoon, this is tipped to show growth in economic activity across Canada. Predictions have also been relatively positive for Friday’s Canadian jobs data, which may provide additional support.

A GBP/CAD rally seems unlikely for the rest of the week. The only notable news will be Friday’s trade balance result, which is expected to show a UK trade deficit expansion.

Key Events

7th September

15:00 CA Ivey Purchasing Manager’s Index

8th September

09:30 UK Trade Balance

13:30 CA Unemployment Change

13:30 CA Employment Change

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To keep up to date with the Canadian Dollar, visit the CAD blog in our Currency News section.

Richard Beaumont

Currency Broker
T: +44(0)1442 892 060

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