Service update:We’re operating normally, without disruption to service, security or normal transfer times. Need help? Get in touch here

If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

Canadian dollar set for losses on Bank of Canada decision

business-articlesCanadian dollar set for losses on Bank of Canada decision
  • Canadian dollar set to weaken if BoC sounds dovish note
  • New round of Brexit discussions may benefit pound
  • Euro trends lower ahead of latest ECB commentary
 
Bullish oil prices shore up Canadian dollar
 
A bullish oil market helped to shore up the Canadian dollar yesterday as oil prices rose to a fresh 2019 high, driven by the prospect of decreased Iranian supply.
 
However, CAD exchange rates look set to come under pressure this afternoon as anticipation builds for the Bank of Canada’s (BoC) April meeting.
 
Markets are wary of the prospect of BoC policymakers adopting a more dovish bias, raising the risk of interest rates seeing a cut in the months ahead.
 
If the central bank maintains a positive outlook, though, this could see the Canadian dollar trending higher across the board today.
 
 
Pound strengthens ahead of latest Brexit discussions
 
With the Labour leadership preparing for fresh talks with Theresa May over a potential Brexit compromise the mood towards the pound improved.
 
This optimism could prove short-lived, however, if the two sides fail to make any tangible progress towards a mutually agreeable deal.
 
The appeal of the pound could also improve, though, on the back of March’s public sector net borrowing figure.
 
With forecasts pointing towards a lower level of new government debt this may give investors renewed cause for confidence in the economic outlook.
 
 
Euro vulnerable ahead of ECB Bulletin
 
The latest European Central Bank (ECB) Economic Bulletin could see the euro losing fresh ground against its rivals this morning.
 
Evidence that the central bank is still taking a cautious view on the economic outlook would leave the single currency exposed to fresh selling pressure.
 
As long as the odds of the ECB raising interest rates before the end of the year remain minimal the strength of the euro is unlikely to pick up.
 
On the other hand, signs of increased optimism among policymakers could offer EUR exchange rates a boost in the short term.
 
 
Upcoming Data:
 
Wednesday, 24th April 2019
09:00 EUR European Central Bank Economic Bulletin
09:30 GBP Public Sector Net Borrowing
15:00 CAD Bank of Canada Rate Decision
 
Philip McHugh

Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.