Yesterday was incredible, and a true example of a market in panic. Sterling has recieved an artificial boost recently against all currencies as more and more money left the Eurozone, with a potential Grexit on the horizon, into safer currencies.
As the post below explains, this is now changing with a more likely deal on the horizon with Greece. Funds are returning to a more stable Euro in droves, which is causing this largely ‘fake’ Sterling strength to deflate.
Today there is little data out from the Sterling and European end to suggest that this will change. The Bank of England interest rate decision will hold no surprises.
However, there is likely to be some weakness from the Canadian Dollar end of GBP-CAD rates. Today data will be released on the amount of new homes were constructed last month for Canadian families – a good indicator for business confidence and consumer spending – which will have a significant affect on the value of the CAD. Just yesterday, the amount of building permits issued were found to have contracted by 14% in a single month! This may suggest a slowdown in the construction data to be released today as well, which will cause CAD weakness.
Call 01494 787 478 today to discuss taking advantage of the current buying rates for GBP-CAD which will likely continue to fall as the day progresses.