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 3 months affecting Canadian Rates rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
The Canadian Dollar has struggled against the majority of its currency counterparts due to a lack of risk appetite within the markets as US equity markets dropped heavily.
However, the Canadian Dollar has managed to make steady in roads against the Pound, highlighting just how fragile the market's perception of Sterling is at present.
This trend continued yesterday. Despite a fall in the price of oil (Canada’s main export) following a release showing a considerable rise in US oil output, the Canadian Dollar still managed to gain nearly 1% against the Pound over the course of yesterday afternoon, making a $200,000 transfer from Sterling to Canadian Dollars nearly £900 more expensive.
CAD buyers may want to look at making a move before Carolyn Wilkins speech at 4pm GMT to limit their exposure.
Although piggybacking on the uncertainty currently weighing on the UK economy at present, Statistics Canada’s building permits data released early yesterday afternoon no doubt reversed the trend for the Loonie. A surprising jump by 4.8% of permits granted showed off a far stronger Canadian housing market than investors may have forecasted and essentially clawed back the 7% slump we saw for the previous month.
This change in trend may well carry a little bit more weight at present. There was potential of course that the Bank of Canada might consider limiting the amount of liquidity within the market to discourage speculating within the housing sector. The clearest way to do this is to raise interest rates and make borrowing more expensive and more importantly for Canadian Dollar buyers, making the Loonie more expensive to purchase.
I wouldn’t be surprised if senior deputy governor Carolyn Wilkins alludes to this at 16:00 UK time today. If this is highlighted as a concern then there is a good chance Canadian Dollars will become more expensive to buy. CAD buyers may want to look at making a move before the event to limit their exposure.
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