Quiet week for Data
This week the only significant release of data to give us a glimpse into the Canadian Economy will be on Friday, where GDP figures for June will be revealed. Until then GBP/CAD, EUR/CAD and other CAD pairings will be governed by events outside of the country.
Following surprisingly goodretail sales figures for the Canadian economy last week, growing twice as fast as analysts had expected, GBP/CAD rates shot down to 2.01 and have since settle just above 2.02. This was also helped by the opposite...
Strong retail data sees GBP/CAD rates tumble!
CAD strengthened yesterday following the surprising growth in their retail sales sector. In a single month the sector grew by 1%, half of which was a growth in car sales due to cheap fuel. Due to the further worsening of oil prices, many who were waiting to buy a car could move on this, because they were more confident with handling the long-term costs involved.
Specifically concerning GBP/CAD rates, this was a fantastic day for CAD sellers. While the Canadian retail sector expanded, the opposite...
CAD value currently stable
CAD has found stability following the BOC's pre-emptive decision to deploy a rate cut. This was hoping to safeguard the economy from the effects of historically low oil prices, worsened by the expected glutting effect once Iranian oil becomes available for global purchase.
The only slight spike has been by about a Cent for GBP/CAD rates following the announcement yesterday that the Bank of England may consider an interest rate hike as early as November (data permitting).
So we are faced with extraordinary buying opportunities, and...
GBP/CAD rates hovering just above 2.0
GBP/CAD Rates have dipped into the low 2.01's this morning before recovering a little higher. It seems those holding CAD are skittish and jumping on any slight improvements in rates in a bid to sell off the strikingly weak currency. This seems to be the only factor which is keeping rates at 2.02.
The muscle behind much of the rates movements recently has been the current strength of Sterling. While some of this is deserved with fantastic employment and growth figures, much of this is...
Greece approves bailout deal
Greece's parliament approved the bailout deal offered by the European Council last night, with 229 voting for the package and 64 against. Of that 64, half were from the ruling Syriza party. The vote was passed amid a tirade of petrol bombs thrown by protestors outside, but we are finally at a point where a deal seems to be close to being finalised. The bailout now needs to be ratified by the parliaments of several key members. After months now, world financial markets can...
GBP/CAD rates break 2.0!
Markets were stunned today, as the Bank of Canada announced that interest rates will be slashed down from already historic lows of 0.75% down to 0.5%. Furthermore, growth forecasts were also cut back which underscored the lack of confidence in the Canadian economy.
Cutting interests rates has been a key way to stimulate economic growth throughout the world following the recession. It encourages the population to spend as lowering rates reduces the incentive to save, and encourages business ventures by making credit cheaper to receive.
Canada...
GBP/CAD Rates surge following ‘Agreekment’ (Daniel Wright)
GBP/CAD rates have breached fresh 8 year highs today - hitting 1.986 briefly on the markets before falling back down to 1.975 by the close of UK trading. This stunned market onlookers, and honestly it took a while for most of us to decipher why rates jumped up so high.
Firstly, oil prices tumbled and they are expected to tumble more, as Iran nuclear deal nears. Once the sanctions are lifted against Iran when they agree to halt their nuclear weapons program, prices are expected...
News over the weekend sees Sterling trading higher on markets
GBP/CAD rates have crept back up into the low 1.97's as talks concerning the Greek crisis have dragged on through the night on Sunday.
Today it is thought that Greek banks will completely run out of cash. Hence, the sudden urgency or some form of agreement between all parties.
Over the past few months GBP has been gaining strength regularly when Greek talks deteriorate, as money flies into 'safe haven' currencies and out of the volatile Euro. As such GBP/CAD trading levels today will be entirely...
GBP/CAD surge today a lesson in market hysteria (Joshua Privett)
Today a long morning of panic selling for the Canadian Dollar emerged. Today at 13:30 GMT was the release for Canadian unemployment data. It seems a lot of investors bet that the data would come in much lower than expected after a long run of low oil prices which have hammered the Canadian economy.
Before the data release many were selling off their Canadian Dollars in hordes as people were worried that the initial tick down of the rates was suggestive that someone knew something they didn't....
GBP-CAD rates back to 1.95 as Sterling loses value (Joshua Privett)
Those who were hoping that GBP-CAD rates were journeying towards 2.0 received a bit of a shock today, as rates dropped 2 cents in a single day of trading. There has been a huge volume of capital pumped into Sterling as many investors holding Euros panicked about a potential Grexit. Sterling is considered a safe-haven currency, so the continued buying of GBP artificially inflated the value of the Pound - causing gains against most major currencies.
Now the opposite is happening. With positive moves in the...