USD/CAD and EUR/CAD exchange rates the focus for the day

Pound to Euro Consolidates Above 1.12 Despite Increased Fear of No Deal Brexit

The long awaited US interest rate decision will be released today.  With the US being the largest economy in the world, and a significant proportion of of global debt being denominated in US Dollars, this decision will likely affect all major currencies. For the Canadian Dollar, the two major currencies in question which will be swinging wildly as a result, will be USD/CAD and EUR/CAD (to a lesser extent GBP/CAD).

USD/CAD has already come under pressure and may fall below 1.32 soon, and EUR/CAD however, is having the opposite effect and could climb through 1.47 today.

The reason for the shift is the negative expectations from the FED’s interest rate decision, and the long term implications of their monetary policy statement which follows this.

The news that US house sales contracted by over 11.5% last month alone suggests that its unlikely the US will be raising interest rates this year. If the housing market is already slowing, than raising the cost of lending may completely stall the process. As such the US Dollar is weakening ahead of the announcement, which is why 1.32 may follow soon.

But why is this causing the Euro to strengthen against the Canadian Dollar? The USD/EUR is the most traded currency pair in the world. So any change in the value of one, normally causes the opposite effect in the other. This is why the Euro is strengthening off the back of uncertainty in the US, and EUR/CAD is one of the few pairings CAD has lost out to today as a result.

GBP/CAD is down today as well. This is because if the US are unlikely to raise rates, so are the UK, so weakness from this news translates into a poor day for the Pound as well.

I strongly suggest that anyone with a USD/CAD or GBP/CAD requirement contact me today on jjp@currencies.co.uk to discuss a strategy for your transfer and avoid any further losses.

Similarly, anyone with a EUR/CAD requirement and have time to wait until further gains, which are likely at this point, we can also construct a road-map for the best time to conduct your transfer.

On all currency pairings I am also happy to supply a competitive quote on your transfer should you wish. +441494 787 478