Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting Canadian Dollar rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
GBP/CAD rates have levelled out over the past week, with the pair hitting 1.74 at today’s high. Sterling, as against most of the other major currencies, has found some support this week following a dip on Sunday following Saturday’s terrorist attacks.
Only a month ago clients were asking me whether a move through 1.80 was likely and based on the positive trend at that time it was certainly a realistic outcome. Fast forward a few weeks and the Pound could struggle to make a sustained rise through 1.75, another level where the CAD is likely to find investor support.
The point here is that the current market is so uncertain that conditions are changing on an almost daily basis and long-term planning is becoming ever more futile. I’m advocating to all clients with a GBP or CAD exchanges to look for short-term market spikes and protect their positions wherever possible, ahead of tomorrow’s UK election.
Brexit negotiation concerns and a poor run of economic data have put a halt on Sterling’s rise, with no guarantee that we will see a recovery any time soon.
Whilst the Pound did find a foothold in the market, it was unable to sustain its increase up to, or through 1.80. The retraction since has caused concern amongst investors, who are now wary as to whether a move back under 1.70 is just around the corner.
Whilst a cloud of uncertainty hangs over the UK economy, Canada has concerns of its own. Crude oil prices are falling and this in turn will heap pressure on Canada’s export driven economy. With Oil being their main export, any downturn has an instant negative effect on their economy and the CAD will likely lose value as a result.
Due to the CAD being a commodity based currency, it is heavily reliant on global growth and as such any up or downturn in the US & China, two of the globes largest economy, can drive these currencies values significantly. This means that investors will look to GBP/CAD for example and see the opportunity to make more money on bigger market swings and thus, the pairs value can fluctuate quite substantially.
Oil prices have remained unsteady for months now and as such those clients holding CAD may wish to take advantage of the current market value and remove any uncertainty moving forward.
Thank you for reading my CAD update, if you have any questions about exchange rates I would be more than happy to discuss them – you can contact me with any queries here.
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