A busy week ahead for data releases in the Canadian economy, as well as other major countries which will affect Canadian Dollar exchange rates against Sterling, the Euro and the US Dollar.
Today Canadian Manufacturing Shipment Data will be released for the Canadian Economy. This is normally seen as a measure of demand for Canadian Goods. This data is normally a positive reflection for the Canadian economy. However, because oil prices have slumped, and price competition from the Middle East has seen Canada lose some of the global market share of oil sales, this figure has come to be an increasingly negative reflection of the Canadian economy.
But there is cause for optimism. As we have detailed on previous posts, there is a manufacturing boom being undertaken currently in Canada as the economy tries to fight out of its recent slump. This data will go a long way towards telling if markets have ‘balanced out’ and Canada is starting to increase its exports once more.
While the markets will be affected by this data, the most important day this week, and for anyone looking to buy CAD to watch out for, is Friday. On Friday we will get a comprehensive overview of the Canadian economy. Inflation data and retail sales figures will be released, which will cause heavy swings on Friday at midday depending on whether the data comes in positive or negative. The preliminary data released this week will give us more solid indications as the week goes on, so stay posted.
In the meantime, the interbank for GBP/CAD is holding steady at 1.91 this morning ahead of the shipment data expected at 12:30pm today. I recommend calling into the trading floor on 01494 787 478 to discuss how to maximise the potential for your transfer off the back of this. If Canada has recovered more than analysts have expected, then GBP/CAD and EUR/CAD will drop, making the Canadian Dollar more expensive to buy. Personally I would be looking to secure these rates while they are at a 6 year high, and doing this before this afternoon will guarantee these rates. Even if you do not have requirements for until the end of this year, these rates can be pegged for up to 12 months, to help you budget more effectively for the year and not worry about market volatility.