Election and the Canadian Dollar

Improvement in growth figures leads to a good end to the week for Canadian Dollar exchange rates

The polls got it incredibly wrong, again, and the Canadian Dollar has swung wildly overnight as a result.

We seem to be harking back almost exactly to the UK election, where polls suggested a close race, and then a majority government emerged instead with the Pound strengthening massively as a result.

The Liberals gained a staggering 54% of the vote, when on Friday they were forecasted to receive a mere 35%. The Canadian Dollar was weakening slightly yesterday with this forecast in mind, because those forecasted results would cause a minority government and 4 years of infighting and little legislative progress.

The result of a majority government has caused the Canadian Dollar to strengthen slightly, and North-American markets have not even opened yet to continue this trend and react to the overnight news. GBP/CAD is still trading near multi-year highs and EUR/CAD, USD/CAD are in better buying positions than we have seen in recent months.

As such, I would strongly recommend that anyone with Canadian Dollars to buy should contact me on jjp@currencies.co.uk to take advantage of this misrepresented weakness in the Canadian Dollar in-case it evapourates as the day goes on.

I can off you a competitive quote on your transfer, and explain the benefits of using a specialist currency exchange company over your local bank to make significant savings. I will happily discuss a strategy with you for any future transfers you have planned. If you are not a regular reader, please note that these current rates can be pegged at no additional cost.

Long-term forecasts have not really altered on the Canadian Dollar as the new government’s policies have not yet been announced, and markets have already proven in the run-up to the election that they are more concerned with current oil price levels to determine Canada’s economic fate rather than legislative agendas.