Daily Archives: April 19, 2012
Will The Pound Breach 1.60 Against the Canadian Dollar?
The pound has once again made good gains today although still lies slightly below the 1.60 benchmark against the Loonie. Retail figures tomorrow for the UK will be important as if these are weak you may see the pound slip back but the key data is likely to be Canadian inflation tomorrow afternoon. Expectations are for a level of 2% although a very high figure may suggest more CAD strength. If you are looking at buying Canadian Dollars then it would be well worth geting in touch to see what we can do for you. Potentially a limit order might be useful in the current climate to maximise your rate. Simply e-mail Colm at cmg@currencies.co.uk quoting psf in the subject matter and a brief overview of your needs.
In other currency news the pound remains very robust against the Euro with the single currency surviving any further pressure from the Spanish bond auction today but this is unlikely to be the end of the story for this currency pair. In my view anything north of 1.20 represents a very decent buying level given the risk that UK GDP data could pose next week. Also sterling Dollar rates are over 1.60; another good target level so if you are looking to buy Euros or buy Dollars then forward contracts may be a suitable option depending on your exact requirements. If you would like to talk through them in more detail with no obligation or cost then call +44 1494 787 478 and ask for Colm.
Sterling continues strong run posting gains against most majors this morning – what data may affect the pound for the rest of the week?
As my colleague Daniel mentioned below we have seen some fantastic moves for the pound this week breaching 1.22 against the Euro for the first time since June 2010 and creeping past the 1.60 mark against the USD. We have also seen strong gains against the Swiss Franc (CHF) gaining 1.1% through the week, 1.5% against the Australian Dollar (AUD) and 2.2% against the New Zealand dollar (NZD). This is creating some fantastic opportunities based on recent trends and we have plenty of clients taking advantage. Email me at mgv@currencies.co.uk to secure your rate today, this may include utilising a forward contract where for a nominal deposit we can secure your rate for up to two years in advance.
For those looking to hold lets explore data sets that might affect your exchange for the rest of this week and heading into next:
Today there is little data from the UK however we have EU consumer confidence figures due for release later this afternoon (15:00 BST). Figures expected to improve slightly from last month and may cause the Euro to claw back some ground in the afternoon session.
Tomorrow appears to be the busiest day left for this week with UK retail sales the highlight in the morning session (09:30 BST). Figures are also expected to show a good improvement month on month from -0.8% to 0.4% and should figures come in as expected we could see some GBP strength across the board. Tomorrows afternoon session is relatively quiet from the pounds point of view but we have Consumer Price Inflation data from Canada. Earlier this week the Bank of Canada held interest rates at 1% but left the door firmly open for future rate hikes citing inflationary pressure and faster growth forecasts as the reason. For this reason anyone with an interest in the CAD should keep an eye on the release (13:30 BST).
Heading into next week the key release will be Q1 GDP figures from the UK due for release on the 25th. This will indicate as to whether the UK is officially back in recession or starting to show small signs of growth. Expectations are for the latter. The release itself can cause large fluctuations in GBP exchange rates and is often one to avoid if you can. To get the best rates in the market and to discuss the service in more detail please contact Mike at mgv@currencies.co.uk
