Canadian Dollar Supported after Bank of Canada Interest Rate Hike (James Lovick)

Pound Euro falls after PMI Services Data in the UK

The Canadian dollar continues to find support after the Bank of Canada raised interest rates from 0.5% to 0.75% following in the US’s footsteps in tightening monetary policy. The shift in policy for the first time in seven years should see further gains for the Canadian dollar especially if the central bank points to further interest rate increases in the months ahead.

Those clients looking to sell Canadian dollars for pounds are seeing attractive levels for converting at present. There may be some better opportunities around the corner however so those looking to sell would be wise to get in touch to try and maximise on the optimum rate of exchange when it becomes available.

The prospect of further limiting the supply of oil through the Organisation for Petroleum Exporting Countries (OPEC) should bring about further strength in the Canadian dollar considering Canada is a major exporter of oil. Generally speaking the higher the price of oil the better it is for the Canadian dollar. The combination of higher future oil prices and higher interest rates in Canada complement each other for a stronger dollar.

This Friday sees Canadian retail sales numbers which should make for interesting reading in light of the recent interest rate hike. Consumer Price Index inflation numbers are also released on Friday which could see a reaction from the dollar. A weak inflation number could see the dollar weaken in the short term which could present any clients looking to buy Canadian dollars with a very small window of opportunity to purchase.

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 jll@currencies.co.uk