Canadian Dollar Rebounds

Pound to Canadian Dollar Rate Remains Towards the Top of Its Range Despite Fears of Brexit Negotiation Delay

Yesterday is now being dubbed as ‘Black Monday’, as a mass panic sell off of Chinese stocks caused a global rout on the stock markets. Capital previously held as securities in the stock market were sold off and either re-invested elsewhere or stored in a chosen currency. The Canadian Dollar lost heavily as this boosted ‘safe haven’ currencies such as Sterling, the USD, and more surprisingly the Euro (a result of their recent commitment to financial security and its relative cheapness.)

This boosted GBP/CAD, USD/CAD and EUR/CAD rates yesterday, with GBP/CAD just breaching 8 year highs.

Since then the rates have been recovering. The People’s Bank of China has cut interest rates by a further 0.25%, a move welcomed by investors such as JP Morgan who said the move was ‘long overdue’. And the bolder members of the stock-market have been buying up ultra cheap shares all morning. With European and London stock-markets back up, much of the artificial currency strength in Sterling, the Euro and the USD has deflated. Though we are still left with incredibly attractive rates for buying Dollars.

It seems Black Monday will not be an ongoing event. But I would not say the problem is dealt with, more on hiatus over the next few weeks.

The stock markets will still be trying to stabilise in the next few days, as markets digest this massive event and also re-calibrate what future global demand will be following this.

Anyone with a requirement involving the Canadian Dollar, please don’t hesitate to get in contact for a free quote. If you have time to wait, it may not hurt to wait a few days and see which direction the rates go. For GBP/CAD the rates have stabilised around 2.08. I would expect this to weaken a bit further, but new market trends may emerge in the next few days which divert from the energy sector in the wake of China’s woes, which may boost buying rates for the Canadian Dollar further. Email me for personal advice and a free quote on [email protected]. Tom Holian