Until Friday this week, with very little data released on the Canadian economy, CAD value will largely be governed by forces outside of its control – such as the US interest rate decision on Wednesday, as well as further oil price fluctuations.
The focus pairing for the week, as the paragraph above suggests, will be USD/CAD as the world watches to see if interest rates in it’s largest economy will finally rise for the first time since the financial crisis.
However, data released today on the US housing market suggests that this is incredibly unlikely all of a sudden. The US housing market contracted heavily last month, with new house sales down by 11.5% in a single month. This will weigh heavily on the minds of the FED, because any raise in interest rates tends to slow housing markets with mortgages becoming more expensive. USD weakness will likely follow the announcement and USD/CAD will fall, so CAD buyers in this pairing should be looking to move before Wednesday.
EUR/CAD is one of the few CAD pairings expected to rise this week. Incredibly positive German data is expected, and with Germany being the powerhouse of the European economy, this heavily impacts Euro value. Despite the scandal over at Volkswagen, business conditions remain fantastic due to the competitiveness of European exports thanks to the Euro’s cheapness as a currency to buy.
GBP/CAD may fall as early as tomorrow morning with the release of GDP figures for the UK economy expected to come in poorly for the third consecutive month. The worst construction data in two years has heralded a contraction for UK growth forecasts from 3% last year down to 2.4%. GBP/CAD could be below 2 by the end of the day.
Anyone with a currency requirement involving the Canadian Dollar can contact me on [email protected] to discuss a strategy for your transfer. I can also supply a competitive quote for your transfer should you wish.