When to buy Canadian dollars?

GBP EUR Exchange Rate: Week in Review October 9th

Since the second rate hike of the year by the Bank of Canada in September, the central bank have been given a cautious tone. However in recent weeks employment numbers have continued to climb which is helping the outlook for the next 12 months. J.P Morgan this week have urged there clients to buy Canadian dollars sooner rather than later as a strong 2018 is on the horizon.

Forecasters are suggesting that interest rates will be hiked at least twice in 2018 which should provide strength for the Canadian dollar. Couple this with wage growth numbers climbing and only oil prices lagging behind the outlook is looking positive.

 

However for clients that are converting GBPCAD exchange rates, buying Canadian dollars may not be the best option. My personal belief is that it’s only a matter of time until progression is made with the Brexit negotiations which could cause a mass buy of sterling which would mean Canadian dollars would become cheaper.

UK Prime Minister Theresa May last week announced that a deal is close to being secured in regards to EU citizens rights. If this true, the UK will be one step closer to negotiating a trade deal which is the reason I expect the pound to strengthen. It just shows when buying or selling Canadian dollars into important to analyse both currencies that you will be trading.

The currency company I work for enables me to buy and sell Canadian Dollars at rates better than other brokerages and high street banks. If you are buying or selling euros this year feel free to send me the currency pair you are trading (CADUSD, CADEUR, CADGBP) the reason for your trade (company invoice, buying a property) and I will email you with my forecast for the currency pair [email protected]. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn