Windsor2

Like other currencies associated with commodities, the Canadian Dollar saw a lot of volatility as investors flittered between concerns over Europe’s debt crisis and signs the global economy is recovering. As concerns grow over the US economy slowing, Canada’s currency has come under pressure as the U.S. represents around 70% of their export market.

Canada’s headline CPI numbers for June came in slightly lower than expectations. Markets had been looking for no movement month on month but prices fell off -0.1% raising questions over the path of interest rates. As expected though the Reserve Bank of Canada hiked rates again on July 20, increasing it a quarter-percentage point to 0.75 percent. A slightly more dovish tone accompanied the decision with the central bank governor saying future boosts will be “weighed carefully against domestic and global economic developments.”

Wrapping up the month, data last Friday showed growth in U.S. gross domestic product slowed more than expected in the second quarter, while Canadian GDP edged up in May after stalling unexpectedly in April. This failed to support the loonie though as it hovered near 5-month lows against the Pound

Central bank rates:
Canada (BOC) 0.75%
UK: (MPC): 0.50%

High & Low of the month:
High:1.6212
Low: 1.5424
Movement: 5.11%

Difference of cost on a £200k property:
High: CAD 324,240
Low: CAD 308,480
So a difference of CAD 15,760


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