Weekly Currency Update GBP/CAD - Week ending 19th March
Mar 23rd 2010, 11:31 am
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Weekly Currency Update GBP/CAD - Week ending 19th March
Hi All,
As promised here’s a brief update on what’s been happening with the Canadian Dollar over the last week.
It was all quiet on the Northern front until Friday's retail sales and consumer inflation measures both surprising to the upside. Inflation picked up by 0.4% y/y to 2.1% y/y on the back of higher vehicle prices and higher hotel rates (17%) due to the Winter Olympics. Although the BoC should start to monitor inflation closely as it breached their 2% target level, the primary catalysts for the increase were fairly specific and possible one time events. We would need to see some consistently high levels of inflation before the timing of a potential BoC rate hike can be debated.
Retail sales were up 0.7% during the month of Jan, being led by the heavy discounts within the home renovation sector attracting more sales. Again we would need to see future month’s data before we could suggest that a trend was developing.
This week Carney's speech due Wednesday to the Ottawa Economic club is the major focal point.
GBP/CAD movement – High’s & Low’s of last week (15th March – 19th March)
High’s: 1.5558
Low's: 1.5215
A movement of 2.25%
Difference on £200,000
High: CAD 311,160
Low: CAD 304,300
Difference of: CAD 6,860
Whilst FX isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.
Regards,
Mark Bodega
Director - HiFX
As promised here’s a brief update on what’s been happening with the Canadian Dollar over the last week.
It was all quiet on the Northern front until Friday's retail sales and consumer inflation measures both surprising to the upside. Inflation picked up by 0.4% y/y to 2.1% y/y on the back of higher vehicle prices and higher hotel rates (17%) due to the Winter Olympics. Although the BoC should start to monitor inflation closely as it breached their 2% target level, the primary catalysts for the increase were fairly specific and possible one time events. We would need to see some consistently high levels of inflation before the timing of a potential BoC rate hike can be debated.
Retail sales were up 0.7% during the month of Jan, being led by the heavy discounts within the home renovation sector attracting more sales. Again we would need to see future month’s data before we could suggest that a trend was developing.
This week Carney's speech due Wednesday to the Ottawa Economic club is the major focal point.
GBP/CAD movement – High’s & Low’s of last week (15th March – 19th March)
High’s: 1.5558
Low's: 1.5215
A movement of 2.25%
Difference on £200,000
High: CAD 311,160
Low: CAD 304,300
Difference of: CAD 6,860
Whilst FX isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.
Regards,
Mark Bodega
Director - HiFX
