There is huge expectation for the Bank of Canada (BoC) and Governor, Stephen Poloz, to raise Canadian interest rates tomorrw. The currency has risen to the best rates since April against the pound as the prospect of a hike triggers a flood of investment into the Canadian economy. With their main trading partner the United States roaring ahead next door, the good news is helping the Canadian economy and a rate hike now seems imminent when the decision is made tomorrow at 3pm. The Loonie has already risen on this presumption and this could lead to some surprise swings of up to 2 cents depending on the outcome, if you are trading a large volume of Canadian dollars or pounds this outcome is very important.
Personally I think the BoC will raise rates and could be quite upbeat about the future, giving further rise to more CAD strength. Friday we saw improvements in the Canadian Unemployment picture across the board with large numbers of increases in new positions and the overall Unemployment rate dropping. I think this will be a sign of future economic strength and the BoC will be more upbeat on Wednesday when the decision is given with the accompanying statement tomorrow at 3pm UK time.
Waiting until then could of course be too late as there are all manner of surprises and shifts in the market we could see before then. For example if the BoC decide to leave policy unchanged, the Loonie would likely weaken as investors scale back the recent investment which has made the currency strengthen recently.
Tomorrow is a huge day for the Canadian dollar and we could see some quick shifts of up to 2 cent in either direction depending on how the market reacts to the news. Pressure is building on the Canadian dollar and if that pressure is not matched by the outcome we could see some better opportunities for well prepared clients.
On amounts of £10,000 plus buying or selling we can help with a personal proactive service to assist with the timing and planning of any currency exchanges you will need to make. In this kind of market my recommended order is a ‘Limit order’ which guarantees your price if the target rate is hit. For example selling Canadian dollars you might be wishing to get 1.64 (or 0.6097 the other way around). We can put a Limit order in at this level and even if the rate is hit for just a second your price is secured.
Tomorrow is without doubt one of the most important of the year for the Canadian dollar, particularly if you are selling CAD to buy pounds. For more information on securing the very best rates of exchange on amounts of £10,000 to the multi millions, please speak to me Jonathan Watson by emailing [email protected].
I work as an Associate Director at one of the UK’s largest independent currency brokerages and am confident I can offer some useful information on the best strategies to maximise your currency exchange.
Please email me as above or call 01494 787 478 during UK business hours and please ask to speak to Jonathan.
Thank you for reading and I look forward to hearing from and assisting you.