Weekly Currency Update GBP/CAD - Week ending 5th March
Mar 9th 2010, 12:32 pm
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Weekly Currency Update GBP/CAD - Week ending 5th March
Hi All,
As promised here’s a brief update on what’s been happening with the Canadian Dollar over the last week.
The BoC left rates steady last week, however the tone of the accompanying statement certainly shifted away from the dovish camp. In their statement they noted that the risk to growth and inflation remains roughly balanced, removing their skew of risks being to the downside. The central bank also continued to note their concern over the persistent strength of the Canadian Dollar. Overall the BoC was more neutral in tone, but enough to set up expectations that interest rates could be increased as early as September.
The domestic economy grew by 0.4% m/m, a full 0.2% more than the market had envisaged, The only minor concern last week was the building permits reading which plummeted by -4.9 m/m, versus a market expectation of 0.9% m/m. The CAD continues to improve and despite being constrained to range limits versus the USD, it has seen significant gains on the EUR and GBP crosses. Trade data on Thursday and employment data on Friday are the key event risks for the week.
GBP/CAD movement – High’s & Low’s of last week (1st March – 5th March)
High’s: 1.6000
Low's: 1.5391
A movement of 3.96%
Difference on £200,000
High: CAD 320,000
Low: CAD 307,820
Difference of: CAD 12,180
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 BoC left rates steady last week, however the tone of the accompanying statement certainly shifted away from the dovish camp. In their statement they noted that the risk to growth and inflation remains roughly balanced, removing their skew of risks being to the downside. The central bank also continued to note their concern over the persistent strength of the Canadian Dollar. Overall the BoC was more neutral in tone, but enough to set up expectations that interest rates could be increased as early as September.
The domestic economy grew by 0.4% m/m, a full 0.2% more than the market had envisaged, The only minor concern last week was the building permits reading which plummeted by -4.9 m/m, versus a market expectation of 0.9% m/m. The CAD continues to improve and despite being constrained to range limits versus the USD, it has seen significant gains on the EUR and GBP crosses. Trade data on Thursday and employment data on Friday are the key event risks for the week.
GBP/CAD movement – High’s & Low’s of last week (1st March – 5th March)
High’s: 1.6000
Low's: 1.5391
A movement of 3.96%
Difference on £200,000
High: CAD 320,000
Low: CAD 307,820
Difference of: CAD 12,180
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
