Sterling strength continues from yesterday…CAD falls from negative long term projections (Joshua Privett)

The surprises continued from yesterday's positive UK economic data releases. Our GDP growth for the first 3 months of 2015 came in a full 0.2% higher than expected. While that may seem miniscule, as this is a measure of  entire UK economy, the figure is substantial, and was treated as such by the Currency Markets, with a Sterling rally back up against all major currencies. Further buying opportunities for the Euro continued today for the same reason. Jeremy Stretch at CIBC World markets believes this was...
Should I buy Canadian dollars now?

Mark Carney Speech last night a lesson to currency markets (Joshua Privett)

During his annual Mansion House speech to the City of London last night, the Bank of England governor Mark Carney stated unequivocally that this was the end of 'the age of irresponsibility', with the introduction of tougher criminal sanctions for market abuse. After a host of scandals by big banks such as HSBC, RBS and Barclays where record fines in the billions were dished out for rigging the foreign exchange markets to profit hugely and illegally off of their own clients. From this you can see...
Pound to Canadian dollar forecast - stead ahead of mid-term elections

Positive GDP figures defy market predictions (Joshua Privett)

Once more we are back in the 1.90's after strong UK Gross Domestic Product figures were released stating that the economy had grown 0.6% in the first quarter of 2015, much higher than the expected 0.4%. Markets were shocked, as the economic uncertainty of a general election, and record low inflation figures and trade deficits, all pointed towards low, or even lower than expected GDP figures. The turnaround shocked markets, and even though it was only 0.2% higher, because GDP is a measure of the overall strength...

GBP-CAD Dropping ahead of the start of trading this morning… (Joshua Privett)

It seems that markets who get to work a few hours ahead of the UK are already trading in a flurry before the numerous  data releases this morning concerning Britain's economy. As the post below details, the GDP estimates for the first quarter of 2015 are more likely to come in lower than expected for the first quarter of 2015. The UK general election, record low inflation and trade deficits, are just some of the reasons why the figures released at 2pm GMT today could come...
Will Theresa May's Brexit proposals this evening offer GBP/CAD direction?

Quiet day on the markets sees rates hold relatively stable

No real data releases of note for the UK, Canada, or the US saw rates hold relatively stable for GBP-CAD and CAD against other major currencies. The Canadian Dollar found enough strength to pull GBP-CAD rates back below 1.90 once more, as the rates seem to oscillate above and below until one of the currencies finds enough momentum to break away from this area of resistance. Tomorrow the release of UK data will likely produce enough material to cause movement one way or the other....

Overnight comments by Obama reverses gains for CAD

The rumour mill  was in full swing yesterday, as Bloomberg printed an article quoting an 'un-named French official' following his meeting with US President Barack Obama. He revealed Obama's concern that the Strong US-Dollar would prove to be 'a problem' for the US economy. The US timeline for raising interest rates is so firmly at the front of investors minds, that even though the quote could not be confirmed, the fear alone moved the markets significantly. What does this have to do with the CAD? The...
Could we see further CAD strength

Has the Canadian Dollar ‘bottomed out’ against other Currencies? What to expect…

We are still close to a 6 year high against the Canadian Dollar. In January the rates above 1.93 were an anomaly from market fears concerning rapidly falling oil prices and the dire situation for Canadian unemployment. At the start of May rates had fallen due to an expected hung parliament in the UK; these fears were proved to be grossly exaggerated. We are now in a period of recovery for GBP-CAD rates, but can they advance any further? The long term view seems to...