The Canadian dollar has remained relatively supported in recent week after the decision was made by the Bank of Canada to raise interest rates. Tomorrow could see new developments for GBP CAD after the Bank of England meeting and quarterly inflation report. The combination of these release and announcements tomorrow has been dubbed Super Thursday and has the potential to create substantial market volatility.
Although no interest rate hike is expected tomorrow there is a growing feeling that Bank of England Governor Mark Carney may talk about the need to raise interest rates by the end of the year and this could result in a positive movement for sterling exchange rates. Those clients looking to buy Canadian dollars could be presented with an excellent opportunity to secure their currency after the meeting.
It would be wise to get in touch at this stage to discuss your requirement and we can help to find those win opportunities when they happen. A 1% increase on a £200,000 transfer into Canadian dollars would generate an extra CAD3300 and there is every chance the markets will react tomorrow.
There is a possibility that Brexit and political concerns could persuade Mark Carney to pause on the future interest rate decision and wait for things to settle first. My view remains that the Bank of England will soon have to follow in both the US and Canadian central banks footsteps and follow the cycle of rate rises! This should be positive for sterling.
Friday sees a busy end to the week with Canadian date with import / export numbers and Canadian unemployment figures which could all help to drive the Canadian dollar.
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 email@example.com