GBP/CAD February Currency Update

The month began with the BoC leaving rates on hold at 0.25% as expected. 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.

Despite this, the release last week of the GDP number for November surprised to upside at 0.4% and the Canadian dollar made broad gains. Direction continues to be influenced by oil prices which appear to be bouncing back pushing the Dollar higher.

This week the focus is on Friday’s employment change numbers with the market expecting to show an increase in jobs created of around 15,000

Central bank rates:
Canada (BOC) 0.25%
UK: (MPC): 0.50%

High & Low of the month:
High: 1.7290
Low: 1.6402
% Movement: 5.41%

Difference of cost on a $200k property:
High: £115,673.79
Low: £121,936.34

So a difference of £6,262.55

All of the information above can be explained clearly by your personalised dealer should you open a trading facility with HIFX. To discuss your requirements in more detail and for a free currency consultation please contact HiFX plc on 01753 859 159 or email [email protected].

Mark Bodega
Director - HIFX