GBP/CAD rates got as high as 1.965 today as everything worked in the Canadian Dollar buyers’ favour to stretch rates just that little bit further, and fresh 7 year highs have been reached!
Canada’s economy contracted in May by -0.1%, only a small amount away from the expected 0.1% growth, but an economy flirting with recession understandably does not attract much confidence. It seems that the poor trade figures released earlier in the month were right to indicate a slow-down in the economy. Whilst Canada is trying to diversify its economy in the face of a struggling oil industry, it is not enough yet to fill the void left behind, but a valiant effort nonetheless. Which is why, I think, the rates only tumbled overall by a Cent today to 1.96. It seems markets are confident that Canada will soon see the fruits of its hard labour and show some more positive readings next month, but for now, tempting buying opportunities are available for the CAD.
Furthermore, GBP got a further artificial boost today when Greece defaulted on its loan from the IMF. This causes people to fly out of the Euro into safer currencies such as the Pound, which gives it some strength in the short-term against other currency pairs. This may continue to happen before the referendum on the weekend, so stay in contact with me by emailing [email protected] and I can highlight when the currency pair has ‘peaked’, maximizing the amount of Canadian Dollars you could achieve.