The pound has slipped lower against the Canadian dollar following a rally higher at the end of November. GBP CAD has now tumbled to 1.66 for this pair having hit resistance just below 1.70 and struggling to break that threshold.
Tonight sees the very important US Fed interest rate decision which is likely to have a big impact on all of the major currencies. The Fed are expected to raise interest rates this evening by 0.25% although any market reaction is likely to be extremely muted on this occasion. It is almost a near certainty that the Fed will hike and this news in my view has already been priced into the market. The Canadian dollar is likely to be impacted by any changes in US interest rates and more importantly the direction of Fed policy in 2017.
UK unemployment data is released this morning at 09:30 and could create some volatility. However unemployment as held up very well since the British referendum vote to withdraw from the European Union with no worsening in any shape or form. Anything stable this morning could be viewed as positive for the pound. Bank of England governor Mark Carney will also be speaking later today and any comments surrounding Brexit is likely to impact on sterling exchange rates. Clients buying Canadian dollars could see some better rates available from positive news in the UK.
Clients who are holding sterling are seeing a very volatile period at the moment which is unlikely to change any time soon although sterling is seeing some rallies start to appear. If you would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]