The Canadian Dollar of late has been one of the strongest currencies, especially due to interest hike in the last few weeks. The GBP/CAD has remained in the low 1.60’s for a week now and the question is will this continue?
In my opinion there isn’t to much chance with the status quo that the rate will fall below 1.60, however if there was to be further interest hikes from the Reserve Bank of Canada then that could change. The most important factor for Canadian Dollar sellers is now economic data. If there is strong data such as the GDP Growth figures tomorrow then the RBC will consider future hikes, however on the flip side negative data will have an effect also. Waiting for major market movements can be very risky and considering transferring Canadian Dollars back to Sterling is at a 5 month high, the market is considerably in your favour.
If you’re looking to purchase Canadian Dollars the Bank of England’s latest interest rate next week could provide a short term boost taking the rate back to 1.65. Governor Mark Carney has had a positive impact on Sterling on occasion in the last few months and positive talk next week could help the GBP/CAD lift a few cent.
If you have a requirement you would like to discuss or ask any questions about my forecast please send me an email Ben Fletcher at [email protected]. Please write a brief description of what you’re looking to do, I will be able help you develop a plan that will enable you to maximise your transfer. Working at a brokerage I am able to set rate alerts and have different contract options available. I will aim to provide you with a response quickly, if you have a urgent query I can be reached on the trading floor at 44 01494 725353.