This week is one of the traditional ‘quiet weeks’ for the global currency markets. Due to the strong connections between currency and current events there is never a particular ‘rest week’, but data-wise there is little out this week that will alter short-term forecasts on growth. Except that the Canadian Dollar, CAD, seems to be an exception. There will be a few trickles throughout the week, culminating in an incredibly important Friday where all eyes will be on the CAD and GBP/CAD in particular.
This afternoon at 13:30 GMT we will see the release of portfolio data for investments in the Canadian economy. Previously, this was forecasted to reflect $5.9bn to be moved out of Canada into alternative prospects overseas by foreign investors. But recent growth in the manufacturing industry, showing shipments up by 1.2% last month alone, may have encouraged some investors to hold onto their CAD or invest in this burgeoning sector. The figures do not have to show that more money has moved in to Canada. It simply has to show that less has left than expected to boost confidence in the Canadian Dollar and therefore cause GBP/CAD weakness.
Friday will be relatively more volatile than today. With the release of retail sales and inflation data for July in the same afternoon the market will be moving wildly. We’ll get clearer indication of what to expect as the week progresses.
Until then, it seems the odds are in favour of some Canadian Dollar strength today, thought with the more significant data to be released on Friday, I imagine most will be looking ahead rather than paying attention to today’s events, so I would not expect a huge amount of volatility. Those with CAD to buy before Friday should get in contact on 01494 787 478 and ask for Daniel to receive a free quote on their transfer and some advice on how to maximise the amount of Dollars you will receive. [email protected]