Expect substantial volatility today for CAD Rates

Pound to Canadian Dollar Outlook: BoC Interest Rate Cut Bets Soar as Oil Prices Sink CAD

In an hour at 9:30am GMT inflation data for the UK economy will be released. Recently the data released from the UK economy has been extremely poor in this area. Inflation actually fell to a negative deflationary number last month but is expected to rebound this morning. Deflation in principle is considered disastrous for an economy. Japan entered a deflationary spiral which is could not escape from for 20 years. An increase in the inflation number this morning will spell Sterling strength and we will likely see 1.92+ reached on the markets.

By 13:30pm we will also have a look at the current long-term state of the Canadian economy. Figures for their current foreign securities investment portfolio will be released. Recently these figures have been coming in quite low. Most companies have liquidated their assets abroad to fund cash-strapped ventures inside Canada, a consequence of low oil prices. If the figure rises from its dissapointing figure in April, then this will show enough confidence in the economy at home that companies are looking abroad as well.

If, however, poor investment figures combine with strong inflation figures in the UK economy, then GBP-CAD rates could receive a very tempting short-term boost for those looking to buy CAD. We are still testing further into 6 year highs, the snap-back will likely be substantial in favour of the Canadian Dollar when it comes. Call into the trading floor today on 01494 787 478 to discuss a ‘roadmap’ of the Canadian Dollar. Whether you are a buyer or seller, tailored advice for your situation and timeframe will be key to maximise the return on your planned currency transfers.