Yesterday afternoon the Bank of Canada released their latest interest rate decision. No surprises rates remained at 0.5% and therefore the decision was a non event. Interest rates have a major impact on that specific currency. When a central bank hikes interest rates, investors flock to that currency for financial gain. On the other hand when interest rates are cut, investors don’t gain as much interest on their investment therefore they transfer their assets into other currencies which will make them higher returns.
The next data release that could have a major impact on Canadian dollar exchange rates is inflation numbers set to be release Friday afternoon. With OPEC cutting oil production globally inflation numbers should start to rise.
FED Chairlady Janet Yellen confirmed yesterday that she plans for rapid hikes within the US and consequently GBPCAD increased by 1.6%, reaching weekly high of 1.628. Looking ahead the pound should remain under pressure due to Brexit deadlines therefore I expect rates to be back in the 1.50s very soon, therefore if I were a Canadian dollar buyer I would recommend making arrangements sooner rather than later.
If you are buying or selling Canadian dollars this week, month or year and I haven’t covered your currency pair I would recommend emailing me with the currency pair (CADUSD, CADGBP, CADAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you [email protected]. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **