Buying Canadian Dollars with Pounds has been becoming cheaper recently and in a fairly straight line this week, which is unique when compared to most currency pairs. The political and economic factors impacting these changes are covered below in today's market report, with the table displaying the range of GBPCAD exchange rates throughout the past month highlighting the importance of timing your transfer well to make the most of your Canadian Dollar return.
|Currency Pair||% Change||Difference on £200,000|
Since Monday buying CAD has become nearly 1.5% cheaper meaning that a £200,000 transfer now secures you an extra CAD $4,800 when compared to the lows on Monday. Rates now sit close to a month high and a majority of these gains can be attributed to CAD weakness rather than Sterling strength. In the UK Brexit negotiations remain very changeable and are having an impact on the pairing but the economic changes, commentary from Central Government and the Central Bank in Canada has been deemed as more influence. A considerable amount of the CAD weakness can be put straight at the troubled relationship that seems to be worsening with its biggest trade partner the US. Since President Trump entered the White house a number of additional trade tariffs have been imposed on goods imported from Canada and the ongoing re-negotiations of the NAFTA agreement seems to have recently taken a turn for the worst.
This deterioration has resulted in policy change from the Central Bank changing growth forecasts for Canada pressures mounting on the economy as a whole.
The Bank of Canada meet this week and kept rates on hold there at 1.5%, suggesting that uncertainty about the NAFTA agreement is resulting in policy changes being put on hold. This change in view is resulting in investors existing from Canada and this change is weakening the currency and making it cheaper to buy. Personally, I don’t see this changing and expect the CAD to get weaker still until the NAFTA deal is resolved.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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