Canadian Dollar Strength!

The Canadian dollar continues to maintain the higher ground against most of the major currencies as recent developments drive the Canadian dollar higher. After the surprise interest rate hike from the Bank of Canada this month the dollar has received yet another boost. The Canadian economy has certainly proved itself to be particularly strong which is being acted upon by the Bank of Canada. Normally interest rate increases are good for the currency concerned as investors start moving funds in to the dollar seeking higher returns.

Economic data from Canada is light as we end the week although Canadian inflation numbers and retail sales data next week could make for an interesting end to next week. Any further strong data could see a positive market reaction for the Canadian dollar as it would reinforce the view that the Bank of Canada will continue to raise interest rates at pace. Those clients with a requirement to either buy or sell Canadian dollars would be wise to consider their options prior to this event as considerable volatility could be expected after the announcements.

GBP CAD exchange rates could also see a hugely volatile period on the 22nd September. UK Prime Minister Theresa May will be giving a speech in Florence on this date which is expected to revolve around Brexit. A strong speech could see the pound rally although the reverse is very much a possibility if negotiations have gone particularly badly in recent weeks. Any suggestion that Britain will fall back on World Trade Organisation rules could see the pound fall against the Canadian dollar as there would be more uncertainty with this option.

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 protected]