Positive data released this morning for the UK industrial complex pushed GBP/CAD rates back into the 2.02’s and verging on 2.03. UK construction and industrial sectors been one of the worst performers recently for the UK economy, which is why the first suggestion that this may be changing has caused Sterling strength.
However, this was short-lived. Strong Durable Goods orders in the US have bolstered confidence in the US economy and by association the Canadian Dollar . Durable Goods are items which take a long time to deliver to the client/customer once they are ordered – for example, large car orders or aeroplanes are the main make up of such data releases. This grew 3.4% in June alone, and excluding the transportation sector, this was still a 0.8% increase.
This data reflects well for a Canadian economy who has invested heavily in their manufacturing sector recently, as it shows their largest trading partner may have a few more clients interested in their wares. This has bolstered confidence in the CAD, which is balancing out the GBP surge seen today. Currently rates are now hovering in the high 2.02’s and it will be a surprise if 2.03 is seen on the markets today for those seeking a GBP/CAD transfer.
Before the release of industrial data from the UK economy this morning, we were expecting disappointing data to be released tomorrow for UK GDP. It is unlikely such industrial data will affect the overall output of the economy heavily enough to show up on the release tomorrow and counteract those initial doubts. I expect rates to fall once more back into 2.01 territory, as rates have been hovering stably in this territory as of late.
Those with a Canadian Dollar requirement should contact me overnight on firstname.lastname@example.org to discuss how to maximize your returns while these rates are at an 7-year high. Alternatively call me on 01494 787 478 for a free quote on your transfer.