In order to get the most out of your money during a currency transfer, understand what affects exchange rates is key. This Canadian Dollar report discusses the factors that are affecting rates currently. The table below shows the difference in a number of currencies you would have achieved when buying £200,000.00 during the high and low points of the past month.
|Currency Pair||% Change||Difference on £200,000|
GBP/CAD rates continue to trade close to the high of the past month, despite Sterling coming under pressure against most of the other major currencies this week.
The Pound hit a high of 1.7256 and despite the CAD finding support under 1.73 of late, it hasn’t threatened to make a major impact despite the well reported market negativity associated with the UK economy at present.
With Brexit negotiations curbing any major advances for Sterling from the current levels, the key question for investors is which direction the pair are likely to take next?
Reports from various financial websites and outlets in Canada, indicate mixed opinions over the relative health of the Canadian economy. On one hand it seems to be gathering steam, with over 80,000 new jobs created and an economic expansion of 1.7% in the last quarter.
This you would imagine, would boost investor confidence and their risk appetite for the CAD would increase. However, the Loonie has failed to make inroads against the Pound, as oil price fluctuations and a concern over its growth prospects for 2018 continue to hold back any sustainable advances.
The Canadian economy relies heavily on the export of crude oil and as such, this year’s steady decline in oil prices has hit the Canadian economy hard and this has been to the detriment of those clients holding CAD currency positions.
However, even though growth forecasts for 2018 have been moderated the Canadian economy is still meant to perform relatively well and as such, you could argue their economic outlook is far healthier and more reliable than that of the UK.
As such I would be tempted to take advantage of Sterling current spike, whilst the Pound continues to trade above 1.70 against its CAD counterpart.
With the global markets likely to remain volatile during 2018, as Brexit negotiations and a shift in the US’s trade relationships take centre stage, securing your currency position now could help you avoid any risk.
Fore more insight into the Canadian Dollar and any upcoming transfers you have, give me a call on 01494 725 353 or email me here to discuss.