The latest interest rate decision for Canada will be announced later today but there is little expectation of a change from the current level of 0.5%.
Policy makers in Canada have been highlighting a number of issues over the last few months and we have seen the Canadian Dollar weaken heavily during this time vs the Pound.
GBPCAD exchange rates have been heading towards 1.80 recently but have started to slip as the problems of inflation have caused the Pound to wobble recently.
The problem for the British economy is that of rising inflation and typically a central bank would increase interest rates in an attempt to curb inflation which would increase the value of Sterling.
However, as confirmed earlier this month only one of the MPC members voted for an interest rate hike and with QE having been used as a monetary policy tool for the last few years I cannot foresee an interest rate hike coming anytime soon.
Tomorrow OPEC will meet to discuss the current amount of oil production. During 2017 there has been a reduction of 1.8 million barrels of oil per day which has seen the value of oil prices go in an upwards direction.
Typically this would result in a strong Canadian Dollar but with trade and tariff issues between Canada and the US this has caused the CAD to weaken vs the Pound in recent weeks. If there is an agreement with OPEC this could see the CAD improve marginally vs the Pound this week.
If you would like further information or a free quote when buying or selling Canadian Dollars compared to using your own bank then contact me directly.
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