Just one day after the election the rally for the Canadian Dollar following the installation of a majority government is already over, and GBP/CAD is near 2.01 on the markets.
GBP/CAD Rates have rallied in the short term with the eventual introduction of Iranian oil into the marketplace, which has lowered its price due to increased supply, in-turn weakening the value of the Canadian Dollar.
All eyes are now looking forward to the Bank of Canada interest rate decision today. This will set the tone for the next month alongside the emergence of new policies following the transition to a new Liberal administration.
Last month the Canadian Dollar strengthened by more than 2 cents on GBP/CAD with the BOC voting against a cut, and the confident speech afterwards about the robustness of the economy by Governor Stephen Poloz to weather a prolonged bout of low oil prices.
With a rally on oil prices which has since ticked down to last months levels, it is difficult to imagine that his position has changed. That being said no-one has a crystal ball, so anyone looking to buy Canadian Dollars and hoping to gamble on negative news today should make sure they are in a position to do so safely.
There are a couple of options open to you when dealing with a currency specialist. First of all, a limit order allows your currency to be purchased automatically when a desired rate is hit, even for a few seconds. And a Stop Loss order, which means if the decision doesn’t go your way and the Canadian Dollar strengthens heavily, your currency is automatically bought when a lower level is reached, but before it drops lower still – essentially a rate you are comfortable with to avoid any further movements against your favour which would make you purchase too expensive to stomach.
Email me on firstname.lastname@example.org for more details and a competitive quote on any planned transfers involving CAD, specifically GBP/CAD which has been seeing the greatest movement recently and will likely see the most benefit from implementing a limit order. +44 1494 787 478