The Canadian dollar has seen mixed signals of late much of which stems from the fluctuating price of oil. Despite a fall in oil prices earlier this week the Canadian dollar has been supported after strong Gross Domestic Product figures showed solid growth at 3.7%. Strong growth going forward could see the Bank of Canada following in the US’s footsteps and may seek to hike interest rates in the not too distant future.
Canadian import / export data and labour productivity numbers released tomorrow could see the dollar rally further on a stronger number. Any further climbs in the price of oil should also help support the Canadian dollar further. The Canadian dollar is positively impacted by a rise in the price of oil considering it is a major exporter of the commodity.
GBP CAD exchange rates have slipped in the last week as the UK election approaches. In a recent poll the conservative party have lost their substantial lead which has resulted in some sterling weakness over uncertainty as to which party or parties will form a government. The poll also hinted at the prospect of a hung parliament and in this scenario GBP CAD could come under added pressure.
Clients buying Canadian dollars may see some improvement in the rates after 8th June if there is a conservative majority and would be wise to get in touch to take advantage of the spike which be sudden. In my view there is a high chance there could be a short term market reaction on a conservative win with sterling making gains across the board. The important thing is to be set up ready so you can move quickly if required.
If you would like further information on Canadian dollar exchange rates or any of the major currencies and to discuss how we can assist 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@example.com