GBP/CAD rates holding steady in the 1.94’s

Oil Prices and Brexit Casuing Volatility for Pound to Canadian Dollar Exchange Rates

Yesterday’s data on Durable Goods Orders in the US came in terribly, which weakened the Canadian Dollar enough to bring rates back up into the low 1.94’s and remain there.

Durable Goods Orders are a measure of bulk and long-term purchases that can’t be filled immediately by the supplier. Such as 20,000 cars or 15 Boeing Planes. Due to the delay in producers being able to supply these orders to the consumer, those who are purchasing must guess what demand would be like in the future. This is a measure of confidence in the consumer market. The data shows confidence was severely lacking in the business world.

A contraction of -0.6% was expected by the actual figure was 3 times worse at -1.8%. For a single month that figure was staggering, which weakened the USD against all major currencies. The Canadian Dollar also lost part of its value, as this shows Canada’s recent manufacturing boom is not coinciding with increased demand for goods from the US Economy, lowering the forecasts for Canada’s long-term growth prospects.

Today further data will be released which is arguably more important – US GDP (Gross Domestic Product) figures. Previously this data showed the US economy actually shrank, if this is repeated once more, then markets will lower Canada’s long term growth prospects (by its association with the US) even further.

There could be some excellent buying opportunities for the Canadian Dollar this afternoon once this data is released at 1:30pm GMT if it comes in poorly again. After seeing how low the confidence in the US economy was shown to be yesterday, this is more than likely. Call 01494 787 478 before the release so that we can stay in contact if the figures come in favourably for those looking to purchase the Canadian Dollar.