GBP-CAD rates back to 1.95 as Sterling loses value (Joshua Privett)

GBP EUR Exchange Rate: Week in Review October 9th

Those who were hoping that GBP-CAD rates were journeying towards 2.0 received a bit of a shock today, as rates dropped 2 cents in a single day of trading. There has been a huge volume of capital pumped into Sterling as many investors holding Euros panicked about a potential Grexit. Sterling is considered a safe-haven currency, so the continued buying of GBP artificially inflated the value of the Pound – causing gains against most major currencies.

Now the opposite is happening. With positive moves in the Greek talks today, investors were calmly flowing back into the Euro, expecting strong returns and hoping for greater stability.

If you are holding CAD and want to maximise this move in your favour, email me overnight on [email protected]. In this situation it is best to ‘play it by ear’. The talks with Greece have been, politically, incredibly unpredictable. We have been close to a deal before, and then suddenly the Greek delegation reneged on past promises. This situation, however, does seem to be different. Greece are now facing a crisis of liquidity, so they have little to negotiate with in their position. That same situation will cause the Eurozone to by sympathetic to a bailout, or face a PR nightmare if they reject a country on the brink of bankruptcy.

Email me overnight to stay in contact during this period. If you detail your requirements over the next month or two, I can monitor the market on your behalf to help you maximise the value of your Canadian Dollars

 

*Data Watch*

Today figures were released which gave an insight into the Canadian construction industry. These were the amount of building permits issued in May and these had actually contracted by 14.5%. An indication for why GBP-CAD rates did not fall as much as GBP-AUD rates today, because Canadian Dollar weakness balanced out the appalling day for Sterling on the markets.