GBPCAD at week high, when best to buy? STEVE EAKINS

GBP EUR Exchange Rate: Weekly Review July 16  

Buying the Canadian Dollar has been becoming cheaper and cheaper of late. Buying now in comparison to 30 days ago is over 2.5% different giving you an extra CAD $10,000 on a £200,000 transfer.  These gains have been seen for the reasons very well published, this being the fires which have hit the people and oil production in Canada. This has weakened the CAD and made it cheaper to buy. Moving forward this I expect to continue to have an impact on future economic data next month, but for the time being, unless the fire gets significantly bigger, it should not have any further immediate impact.  This points us towards thinking that these current highs ARE THE BEST WE WILL SEE FOR A WHILE.

In the near future it is UK data that will drive this pairing with a negative tone expected.  We have ‘Super Thursday’ in the UK tomorrow which is when we get a full update from the Bank of England. It includes an update on Inflation, Growth Expectations and indeed interest rate changes, a very influential event not just for the near future but the longer term too.  This is expected to be negative with growth forecasts widely expected to be cut, the view is 2017 will fall from 2.2% to 2.0%. Expect a fall as a result and therefore this points us towards thinking that these current levels are towards the top of the range we are going to see in the near future.

If you would like more information on timings to assist you with your personal transfer please get in contact. Email me directly at [email protected]