Its been a slow week for the Canadian dollar vs the US dollar as US stock markets tumbles throughout Monday and early Tuesday morning. Economists are trying to put their finger on why the stock market crashed and many are suggesting the recent jobs data in the US coupled with the incoming new Chair of the Fed Jerome Powell are the main reasons.
It now looks likely that the Fed will raise interest rates at their next meeting in March, and investors are therefore selling their stocks and shares and investing in the US dollar in anticipation a hike will occur in March. Furthermore it’s a great time to buy US dollars as the dollar was one of the worse performing G10 currencies last year. The most traded currency pair globally which is EURUSD has increased from 1.06 to 1.25 in 12 months.
In regards to CADGBP exchange rates over the last few months exchange rates have continued to decline due to the improvement in the UK economy and the change in sentiment surrounding Brexit. UK GDP for Q4 impressed and average earning numbers improved last month. In regards to Brexit the transitional talks are ongoing and UK Prime Minister Theresa May has announced that she hopes to have them wrapped up by the end of March. I wouldn’t be surprised to see opportunity present itself for Canadian dollar sellers that are buying sterling throughout March closer to deadline day.
If you are buying or selling Canadian dollars this week, month or year and I haven’t covered your currency pair I would recommend emailing me with the currency pair (CADUSD, CADGBP, CADAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you [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.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **