Sterling’s biggest loss of the day was against the CAD yesterday as Canada’s annual inflation rate jumped to the highest level in eight years last month, rising to 3.7 per cent, much higher than economists had expected. That prompted speculation that the Bank of Canada may have to raise interest rates earlier than expected and calls are for a rate hike before the year end. The pound lost around 2 cents against the CAD after the data release. If you had traded before the data release you could have achieved an extra $3780 on a £200K purchase.
We have seen the pound fluctuate by over 6 cents in the last month alone and for those with a requirement to buy Canadian Dollars the outlook is bleak if interest rates start to rise by the year end.
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