Canadian Dollar Supported on $25 Billion Government Spending (James Lovick)

GBP EUR Recovers from Early Losses on EU Trade

The Canadian dollar still maintains the higher ground against the pound despite some taking some short term losses over the last few days. The Bank of Canada decided to hold interest rates at 0.5% last week having not been forced into a move considering all the additional spending that is being provided by the government. Canadian Prime Minister Justin Trudeau has embarked on a $25 billion spend on infrastructure which should in theory be a major boost for the Canadian economy at a time when Canada has a suffered as a result of the very low price of oil. The spending takes place over two years which will create jobs whilst also increasing GDP to an expected 1.7%. This is all very good news for the Canadian dollar and there may be some further gains for this currency for as long as this recent feel good factor remains.

The pound is of course weakened at present against the Canadian dollar and all of the other major currencies with the ongoing EU referendum uncertainty. Clients with an exposure to the Canadian dollar would be wise to consider these implications as high volatility is expected in the run up to 23rd June. A vote for Britain to remain in the EU is likely to see considerable sterling strength so those clients with Canadian dollars to sell may wish to consider moving well before that potential outcome.

If you have an upcoming CAD currency requirement either buying or selling and would like to be kept up to date with key market movements, or simply wish to compare our award winning exchange rates then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively you can email me directly on [email protected]