After almost hitting 1.92, Sterling has benefited from a mass-influx of currency from the European mainland. The sudden deterioration in talks with Greece has forced many investors to flee to safe haven currencies such as the Pound. In doing so, they have driving up the value of Sterling on the currency markets, which is why in the first few hours of trading this morning rates have glided back up to 1.94.
This should be viewed as another golden opportunity for Canadian Dollar buyers. We are back up at close to 7 year highs, but this is not due to any strength in the UK economy, only fears in the Eurozone, as such these rates can hardly be viewed as sustainable.
I feel a deal will emerge, as both parties have too much to lose. If Greece defaults their economy will no longer be ‘on the rocks’ but in free-fall, and the Eurozone cannot afford for Greece to leave because of the potential knock-on affects for other countries such as Spain and Portugal, who are also experiencing problems. Once this happens, investors will steadily feel comfortable returning to the Euro, hoping for significant returns whilst the currency is so cheap, which will deflate an overvalued Sterling. It is hard to gauge by how much, we will have to see how the political situation develops.
Those looking to sell CAD will be presented with better rates moving forward over the next few weeks, but it will be a roller-coaster. Email me on [email protected] so that we can stay in touch easily during this period to relay the most up-to-date news. Those with CAD to buy, call into +44 1494 787 478 to discuss securing these historic rates. They have not been this good since the start of the financial crisis, and there are options to peg these current rates for up to 12 months at no cost to make sure you don’t have to miss out on the current buying opportunities for GBP/CAD available to you.