The Canadian Dollar has had a volatile day with a difference of 1.5 cents between the high and the low. Yet GBP/CAD exchange rates are still moving slightly above and below the 1.88 mark – so little net change throughout the day.
There are combination of weakening factors for both the Pound and the Canadian Dollar which are evening out the rates of exchange currently.
The Pound has weakened due to the high profile resignation of a member of the Government’s Cabinet. His reasoning was intially due to his moral objection to the recent cuts against disability benefits. But when the press got wind of his support for the leave campaign the value of the Pound plummetted – similar to when Boris Johnson announced that he would be leading the Brexit campaign.
The Canadian Dollar has been burdened by a reversal in the fortune of oil prices as well. Rising back above $40 per barrel this level has now been tested in the other direction.
The question now is which more long term. Who will win out to cause the most weakness and see the buyer gain on GBP/CAD exchange rates?
Oil prices have been rather cyclical recently, whilst talk on the referendum is still to be endured at least until June 23rd. It’s likely political uncertainty and Pound weakness will win out.
I strongly recommend that anyone with a Canadian Dollar buying requirement should contact me on [email protected] to discuss a strategy for your transfer in order to maximise your currency return.