The Bank of Canada are due to be meeting later this evening to announce their latest interest rate decision.
The expectation is to keep interest rates on hold so I don’t think we’ll see any changes in monetary policy, however, the important part of the day will be the accompanying statement which will provide us with evidence as to why they have decided this month’s policy.
The Canadian Dollar has been gradually improving against the Pound during the last few months but we could start to see a reversal of fortune as oil prices have started to fall.
Oil is one of Canada’s main exports and with a 9% fall compared to last week I think we could start to see a problem for the Canadian Dollar coming soon.
With the US Federal Reserve expected to continue on their path of raising interest rates in the near future the disparity between the two if Canada continues to keep rates on hold could see problems further down the line causing Canadian Dollar weakness.
There is also the ongoing uncertainty of NAFTA as Canada send approximately three quarters of its exports south of the border to the US so if the talks breakdown or tariffs are changed then again this could cause problems longer term for the Canadian Dollar.
Therefore, if you’re considering selling Canadian Dollars it may be worth getting this organised in the short term before GBPCAD rates start to climb again.
Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident of being able to offer you bank beating exchange rates as well as helping you with the timing of your currency transfer.
If you would like a free quote then email me directly and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org