The Governor of the Bank of Canada Stephen Poloz this week suggested the low interest rate in Canada had done their jobs helping unemployment fall to the lowest level in 2 years. After the Canadian economy had a tough time last year, due to the collapse in the price of oil along with the severe forest fires, things are looking positive.
The economy is starting to show signs of growth and a hike may be on the cards soon. The Bank of Canada will meet in two weeks tome for their latest decision, whilst a hike doesn’t seem imminent in my opinion. There could be scope over the next few months for the Central Bank to return the rate to levels last seen in 2015 of 0.75%, with 1% interest last seen in 2014. A rate hike for the GBP/CAD could see the level move back towards the mid 1.60’s. If you’re looking to purchase CAD with Sterling this is a very real threat and worth considering moving sooner rather than later, alternatively if you’re selling CAD year highs may not be far away.
CAD Next Week
There will be a fairly quiet day for the Canadian Dollar next week until Friday which will see the release of the latest Unemployment figures. This could provide Canada with a late flourish to the week as Unemployment levels have been falling over the last few months. If you have a Canadian dollar sell requirement, being in position to trade by Friday could give you the best chance to achieve the highest rate.
If you have any questions with regards to my forecast above please don’t hesitate to contact me to discuss how I could help. I am part of a brokerage that has been trading for 18 years and would be happy to help you achieve the best rate. Putting a plan together to make sure you’re trading at the right time to maximise your funds. Please send me an email to email@example.com briefly explaining what you’re looking to do.