The slide in GBP/CAD rates over the past few days seems to have halted around the 2.03 mark.
CAD strength has played a major part in this reversal of fortune where rates briefly hit 2.098 following the event of Black Monday. Stock markets have recovered since, and state intervention in the Chinese economy has been received well by markets, as a result a more positive outlook for global growth has pushed up oil prices – a key factor in CAD strength and has weakened GBP/CAD as a result.
The general revival in the stock market has helped the USD considerably. The close ties between Canada and the US tends to lend strength to the Canadian Dollar indirectly.
However, some positive figures for Sterling came in this morning which has now halted its slide on the Canadian Dollar. GDP figures held steady when many were expecting a slump. The figures for business investment also support further growth to come, with a 5% increase now expected for the year, revised up from 4%.
So now it seems we’re in a stalemate, with Sterling strength matching that of the Canadian Dollar, on GBP/CAD rate movement. A similar situation has also emerged with EUR/CAD rates.
Markets are still entirely dependant upon the developing situation in China. This relative stability compared to the volatility at the start of the week could signal that markets are expecting some measures to be announced by the People’s Bank of China over the weekend. Central Banks do this to try and control market reactions, so we’ll know more at the start of the week.
Further intervention will likely be hailed positively for future global demand if they announce further financial stimulus, and will likely cause further CAD strength. I recommend that anyone with a Canadian Dollar buying requirement, whether its USD/CAD, GBP/CAD or EUR/CAD to contact me today ahead of this potential release on +441494 787 478 for a free quote on your transfer. Alternatively email me on [email protected] over the weekend to discuss your personal situation in more detail, and we can construct a roadmap to try and maximise the returns on your transfer.