Sterling strengthened against all the majors last week, with the Canadian Dollar briefly hitting the 1.80 mark. This week looks slightly less promising with the CAD retracing some of the gains in early trading on Monday morning, with many analysts predicting that we will see the CAD strengthen against the Pound as the week goes on.

This week’s most significant data releases from Canada are the New House Price index, which came in as expected at -0.3%. We will also see the loans data and sales review from Q4 of 2008, both expected to be strongly negative. However this may not be able to help the Pound sustain its recent gains on the CAD, as there is no key data or investor sentiment backing the British currency, and with further interest rate cuts expected, CAD buyers may be wise to secure their currency on a Forward Contract.

Speak to your account manager at FCG for more details, and to ensure that you get the best possible exchange rate on Canadian Dollars.