Any clients with a short-term CAD currency exchange requirement will be keeping a close eye on Wednesday’s Bank of Canada (BoC) interest rate decision and subsequent monetary policy statement.
The BoC are expected to keep rates on hold at 1.25% and with economic uncertainty around the Canadian economy at record highs, I would be very surprised to see a rate rise even muted under current market conditions.
The CAD itself has been under increasing pressure for much of 2018, with heavy losses against Sterling and the USD.
The silver lining for those clients holding CAD is that is has founds some support against Sterling around 1.83 but has yet to make a significant move back below 1.80.
Whilst President Trump’s stance has softened somewhat in recent weeks in regards to the on-going talks regarding the NAFTA deal, which are likely to be key to Canada’s economic well-being, there are still some serious concerns amongst investors in regards to the global trade wars and the negative effects this could have on the Canadian economy.
Canada is heavily reliant on global trade and any tariffs imposed by the US or countries trying to counter Trump’s measures, could seriously impact exports, in particular crude oil. Exports of crude oil have already been hit by the significant drop in prices across the globe and any further downturn in this sector could have serious ramifications for the Canadian economy and ultimately the CAD.
Those clients with a GBP/CAD exchange to make will also be very interest in tomorrow’s UK unemployment rate and average earnings data.
Any further improvement in these and we could see further rumours a rate rise by the Bank of England (BoE), which would likely boost GBP/CAD rates over the coming days.
Personally, I would be looking to take advantage of the improvement seen for the CAD over the past few days, especially when we consider all the potentially negative variable mentioned above.
If you have an upcoming CAD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.