Windsor2

The Canadian dollar saw a 2.8 percent drop against the USD in August, the worst monthly performance since June 2009. The currency dropped after U.S. home sales declined 12 percent in July and Canada’s economy slowed to a 2 percent annualize growth rate in the second quarter, driving investors out of higher-yielding assets. Data showed factory product prices rose less than expected and the current account balance widened more than forecast. Global stocks and crude oil, two of the currency’s primary drivers, fell and furthermore there were 9,300 jobs lost in July, the first decline of the year.

Bank of Canada Governor said last month that further action will be “weighed carefully against domestic and global economic developments.” The central bank raised its rate by 25 basis points at its June and July meetings, currently at 0.75 percent. The Canadian Prime Minister indicated he doesn’t plan to bolster the government’s stimulus efforts, saying he will stick to a plan that will begin focusing on debt reduction as of next year.

Central bank rates:
Canada (BOC) 0.75%
UK (Bank of England): 0.50%

GBP/CAD High & Low of August:
High:1.6477
Low: 1.5963
Movement: 3.22%

Difference of cost on a $200k property:
High: £329,540
Low: £319,260
So a difference of £10,280

All of the information above can be explained clearly by your personalised dealer should you open a trading facility with HIFX. To discuss your requirements in more detail and for a free currency consultation please contact HiFX plc on 01753 859 159 or email [email protected].
Kind regards

Mark Bodega
Director - HiFX
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www.hifx.co.uk