US Federal Reserve keep interest rates on hold and the impact on the Canadian Dollar (Tom Holian)

GBP EUR Recovers from Early Losses on EU Trade

The Pound vs the Canadian Dollar has stayed relatively stable overnight as the US Federal Reserve decided to keep interest rates on hold at 0.75%.

There was a chance that the US would increase interest rates but owing to the US general election due in less than 2 months time it could be argued that the Fed are being cautious at the moment about changing monetary policy.

The movement of the Canadian Dollar is often affected by what happens in the US and owing to the lack of any interest rate hike that has kept the Canadian Dollar strong against the Pound.

The rate to buy Canadian Dollars with Sterling is now at its lowest point in 4 weeks so if you’re looking to buy Canadian Dollars then it may be worth looking at getting things organised before the rates continue to decline further.

Canadian Retail Sales are due for release tomorrow afternoon and this could cause some volatility for GBPCAD rates following the data announcement.

Inflation data for Canada is also due out tomorrow afternoon and movement in inflation typically has an effect on a central bank’s policy.

The expectation is for 2% which is steady and on target compared to what the UK is experiencing so it could be argued that this will be positive for Canada and therefore we could see GBPCAD exchange rates drop below 1.70.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]

I look forward to hearing from you.