Sterling to Canadian Dollar exchange rates soften once more (Joshua Privett)

GBP EUR Looks to Employment Figures for Support

For anyone interested in the Canadian Dollar and holding Sterling, the battle to be the first to raise interest rates is on, with Sterling to Canadian Dollar rates softening as we head into the next Canadian interest rate decision in a couple of days.

On July 12th the Bank of Canada will release their latest decision on whether they will raise interest rates or keep them moored at current levels.

Interest rate decisions are one of the key currency exchange rate movers at the moment. With so much global uncertainty on the political scene – not just from the UK’s Brexit and minority Government fallout, but on the North American side as well. The changeability in Donald Trump’s relation with Canada is weighing heavily on investor confidence. As such, concrete economic trends and returns – such as those governed by interest rates – have become a deciding factor for investors.

The changing demand surrounding hints about interest rate rises in both the UK and Canada has been the key mover on market rates since the middle of June.

There have been hints of an interest rate rise at the BoC’s next meeting on Wednesday, with indications from Governor Stephen Poloz translating into stronger gains for the Canadian Dollar recently.

Traders have effectively priced in a 50% chance of a rate hike. Whether this will materialise is all up to one man who has in the past surprised financial markets before with the previous rate cut in the Canadian economy.

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I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you significant sums of money on a prospective transfer.