Weekly Currency Update GBP/CAD - Week ending 5th February
Feb 1st 2010, 10:57 pm
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Weekly Currency Update GBP/CAD - Week ending 5th February
Hi All,
As promised here’s a brief update on what’s been happening with the Canadian Dollar over the last week.
The week began with the Bank of Canada as expected leaving rates on hold at 0.25%. Within the accompanying statement the central bank suggested that domestic demand will be the primary driver of growth for Canada vs. export led gains. On the currency front they suggested that the strength of the Canadian Dollar continues to act as a significant drag on economic activity.
To this end they also revised down their growth outlook for 2010. Later the Monetary Policy report echoed the sentiment left by the BoC which set the stage for the very disappointing retail sales reading. During the month of November, sales levels fell by 0.3% raising questions marks over the BoC's certainty of a domestic lead growth phase.
Finally it was also reported that the Russian Central bank has ceased their CAD buying program for reserve purposes. The absence of this psychological cap has helped open up the upside for this currency pair. This week will look for the GDP reading due of Friday which is expected to be soft after the weak retail sales data.
GBP/CAD movement – High’s & Low’s of last week (25-01-10 to 29-01-10)
High’s: 1.7290
Low's: 1.6990
A movement of 1.77%
Difference on £200,000
High: CAD 345,800
Low: CAD 339,800
Difference of: CAD 6,000
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.
The week began with the Bank of Canada as expected leaving rates on hold at 0.25%. Within the accompanying statement the central bank suggested that domestic demand will be the primary driver of growth for Canada vs. export led gains. On the currency front they suggested that the strength of the Canadian Dollar continues to act as a significant drag on economic activity.
To this end they also revised down their growth outlook for 2010. Later the Monetary Policy report echoed the sentiment left by the BoC which set the stage for the very disappointing retail sales reading. During the month of November, sales levels fell by 0.3% raising questions marks over the BoC's certainty of a domestic lead growth phase.
Finally it was also reported that the Russian Central bank has ceased their CAD buying program for reserve purposes. The absence of this psychological cap has helped open up the upside for this currency pair. This week will look for the GDP reading due of Friday which is expected to be soft after the weak retail sales data.
GBP/CAD movement – High’s & Low’s of last week (25-01-10 to 29-01-10)
High’s: 1.7290
Low's: 1.6990
A movement of 1.77%
Difference on £200,000
High: CAD 345,800
Low: CAD 339,800
Difference of: CAD 6,000
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
