The Canadian dollar should be in for an interesting week ahead of a major speech from the Bank of Canada. Bank of Canada Stephen Poloz will be speaking on Wednesday and will be eagerly anticipated considering the recent actions from the central bank. The Bank of Canada has raised interest rates twice this year in both July and September and any clues as to another hike could see considerable market volatility for GBP CAD. Any suggestion fo another hike could see the Canadian dollar make additional gains across all of the major currencies.
Rates for GBP CAD appear to have peaked after an excellent couple of weeks for this pair which was largely driven by UK developments from the Bank of England which has indicated that interest rates may rise as soon as November.
The spotlight remains on the UK after the speech on Friday from UK Prime Minster Theresa May whilst the 4th round of Brexit negotiations have restarted today.
Those clients looking to move Canadian dollars into Euros are seeing a better opportunity to buy Euros after the German election result which will now see a coalition formed into the coming months. The fact that the result was not as good as expected for Angela Merkel could see additional losses fro the Euro although my view is that there has been a knee jerk reaction to the news. Angela Merkel will serve her 4th term as German Chancellor and this should bode well for Euro exchange rates.
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