The Bank of Canada kept their interest rate on hold at 0.5% today reflecting the continued slack in the Canadian economy and labour market. This has seen the Canadian dollar a little weaker as we approach the close of play, the pound has also been struggling but the main loser has been the Canadian dollar. GBPCAD rates had been languishing between 1.62-1.63 lately but had hit 1.65 today on the news. What can we expect next for the GBPCAD rate and should I buy Canadian dollars sooner rathe than later?
The general impression is that the Canadian dollar will follow the suit of its most important trading partner the United States and raise interest rates. It is widely expected and seen from history that when the United States does well so does Canada. There is often a gulf and at present the Canadian economy has been on the back foot since the fires which caused widespread disruption to Oil exports, Canada’s biggest export. Canadian GDP (Gross Domestic Product) due tomorrow will offer some further insight into how this economy is performing. On balance further strength for the Canadian dollar seems highly likely but the fact the Bank of Canada were a little less positive than had previously been expected the rate slipped.
The pound still remains at the mercy of the uncertainty over the Brexit plans and negotiations which have caused the pound to slide today. Many investors are expecting the upcoming Brexit plans to lead to widespread economic uncertainty in the future. If you have a transfer involving buying the pound with the Canadian dollar then I would suggest moving sooner rather than later to let us know. If you are buying pounds with Canadian dollars we might yet see better deals around the corner.
For more information and for some proactive personal assistance to achieve your exchange rate please don’t hesitate to contact me Jonathan by emailing email@example.com