The Canadian dollar rises and fall according to sentiments on the Canadian economy which are largely driven by the price of Oil, Canada has the third largest reserves of Oil coming behind Saudi Arabia and Venezuela. The Canadian Oil and Energy Industry is highly developed and accounts for 10% of Canadian GDP. This means as the price of Oil rises and the Canadian dollar is strong, when the price of Oil falls the Canadian dollar weakens. Lately a big driver on the GBPCAD rate has of course been the prospect and outcome of the Referendum which has seen the rates plummet. As confidence is gently being restored the rate has risen but in the absence of any new news rates should remain fairly range bound for the coming weeks.
If you have a transfer to consider involving buying and selling the pound then making some plans in advance is sensible to avoid disappointment. The market has settled but also we are faced with fears and uncertainty of the next steps for the pound. Should the Bank of England cut interest rates then the pound could well fall further plus the prospect of Quantitative Easing will have a big negative impact. If you have a transfer to consider then making some plans in advance is sensible with such larges shifts having occurred on the currency markets in the last few weeks.
For more information at no cost or obligation please speak to me Jonathan on [email protected]