Flood of data today should affect CAD only indirectly

Pound to Canadian Dollar outlook Will Sterling struggle against the Canadian Dollar?

Ahead of Friday, where we’ll get a transparent look into the Canadian economy through the release of their retail sales figures and their inflation data, today will see a flood of data from the EU, the UK and the US, which will see EUR-CAD, GBP-CAD, and USD-CAD experiencing severe volatility.

Monetary policy statements will be announced for the UK and US economies. Markets will be looking for some indication about when interest rates will be raised in both economies. Both have had worries about current levels of inflation, with the UK going into deflation last month and the US flirting with the same occurrence. Should these monetary policy statements come in to show more hesitation and less confidence in the respective economies following these unfortunate revelations recently, confidence will fall in the Pound and the US Dollar. I would be tempted to buy ahead of these statements in the afternoon, and I recommend calling into the trading floor on 01494 787 478 to ensure you secure the current 7 year highs in GBP-CAD rates.

The Euro is one of the few currencies that the CAD might lose ground to today. The Eurozone has its own inflation data to be released. Recently this has been showing improvements for the EU economy and this suggests their emergency monetary policy of Quantitative Easing has been working. Further improvements, which are likely at this point, will see further confidence in the Euro and a rise in EUR-CAD rates.

CAD sellers, if you have a requirement in the next few weeks, these data releases could present some tempting short-term opportunities in CAD-GBP and CAD-USD. Call the number above  to discuss your short-term options to maximise the value of your CAD in a down market.