Buying US And Canadian Dollars, Will We Hit 1.6?

Across the pond in Canada we have had Consumer Prices Index figures out at lunch time followed by New Home Sales in the US and a speech by FED chairman Ben Bernanke early evening. The Canadian dollar has been trending down against the pound giving good opportunities for buying Canadian dollars. If you have a requirement coming up speak with Currency Index today and make sure you don’t miss out on the best GBP to CAD rates in the past couple of weeks.

The Canadian CPI came in better than expected at 0.4% and 2.3%  compared to forecast 0.3% and 2.2% monthly and yearly figures respectively. Although better the broadly weak Loonie couldn’t maintain the brief gains it made against sterling and currently sits nearly a cent higher than this morning just under 1.59. As predicted yesterday I feel the move will continue up to the 1.6 mark next week.

The US new homes sales data released was lower than expected and so we have seen some dollar weakness this afternoon reversing any gains the greenback had made after the UK’s poor data this morning. Only 313,000 new homes sold last month compared to 325,000 expected. The month on month percentage figures were drastically different coming in at -1.6% for February compared to a 1.3% growth, in addition to a revision for the previous month of -5.4% from -0.9%!

The dollar slide will now be compounded or halted depending on Ben Bernanke’s speech later today. Coming after the close of trading in Europe it will be Monday until we see the effects, if any. Could we hit 1.6 next? I personally think if Bernanke’s comments are subdued the rates will be dictated by investor sentiment towards China and Europe. Asian trading early Monday morning will set the tone for where we open here in the UK. I’m betting sub 1.6 still… we will see.

Good times for those buying either US or Canadian dollars at the moment, contact me directly if you have a requirement and would like me to be your eyes and ears and I’ll be happy to assist you get the best exchange rates.


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