GBP/CAD, EUR/CAD, USD/CAD and more will be subject to numerous market forces today. There will be data releases in the Canadian economy, political upheaval in Europe, and a flood of economic forecasts released for the UK, Europe and the US.
At 13:30 GMT the release of GDP for the Canadian economy during the month of May will be the most important point to watch out for the day. Canada has tried extremely hard to diversify its economy in the face of record and sustained poor oil prices this year. Yet preliminary data this month reflecting poor shipping data for Canada, as well as a slow down in the US economy suggests that the data may come in poorly.
However, this may already be priced into the market from the strong shifts against the Canadian Dollar during yesterday’s trading session. I can’t imagine the data could come in better than expected in the current economic climate, but if they come in worse, we could see rates pushing into 1.96/7 briefly, before settling back down. Those looking to buy CAD should consider a limit order. This way, if the market reaches your target rate, even for a moment, you can secure your funds at that rate day or night, which will make gambling a more fruitful endeavour.
Secondly, the Greek crisis will be a signigicant driver for GBP/CAD and EUR/CAD rates. Today is technically the deadline for the loan repayment for Greece, even though they have indicated that they will be waiting until the results of a referendum on Sunday to see if the nation as a whole will agree to their creditors demands. This will cause signficiant volatility throughout the day – strengthening the CAD against the EUR, but it will be difficult to predict what will happen to GBP/CAD rates. Call 01494 787 478 to discuss your particular requirements throughout the day, there will be constant new streams of information that I will be happy to share.