Sep07
Bank of Canada Interest Rate Decision
Sterling has gained a little ground back against the CAD today with the high pushing back into the 1.60s again. Whether this movement is likely to continue in the Pound’s favour however seems unlikely.
Whilst UK data is struggling at present the Bank of Canada are expected to increase interest rates tomorrow which should trigger a very positive reaction for the Canadian Dollar. If these rates are increased as expected then it may become significantly more expensive to make a GBP / CAD trade in the short term.
If the rates are not increased however expect the opposite effect to happen as the Canadian Fiscal Policy is exposed to be dovish, or opposed to aggressive action. This will have a negative effect on the Canadian Dollar and expect it to become significantly cheaper to make a CAD purchase.
Get in touch with your currency broker for an informed decision on which way this is likely to go on 0800 328 5884.
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