CAD rates stable on Election Day

Will Pound to Euro Rates Gain in September?

CAD rates are still surprisingly stable on the day of the Federal Election. We are seeing some very slight Canadian Dollar weakness at the moment but nothing compared to what other currencies have experienced this year. As an example, GBP/CAD in the run up to the UK election weakened by 3% as uncertainty about the British government moving forward reduced confidence in the Pound. This time around, the CAD has only weakened by about 0.8% so far.

Polling numbers over the weekend suggest an even larger lead for the Liberals, up from 4% to 9.6% so this lack of weakness may be surrounding greater certainty as to the result.

GBP/CAD may reach 2.00 today, as it has risen be about half a cent in the past hour, but this market still seems tentatively dismissive at the prospective results. We may not see any real movement until the actual announcement or preliminary exit polls.

Most analysts were predicting that risk had still not been priced until the rates, and this may still be the case. We may not know more until North American markets open in the morning, who have a greater investment in the result and may drive rates further than the European markets have been doing currently.

Anyone with Canadian Dollars to buy may see some tempting opportunities presented tomorrow. If you have a target rate to buy CAD which you have budgeted for or have targeted in the current market, if you email me on teh@currencies.co.uk with your requirements and I can discuss the options available to you to automatically buy at the high of the market. I can also offer a free and competitive quote on your transfer should you wish.