Since the UK public voted in favor of leaving the European Union exchange rates have dropped 26 cents. To put this into monetary terms a 200,000 Canadian dollar purchase is now £16,900 more expensive.
For Canadian dollar buyers, the House of Lords should reach a decision to whether Theresa May can trigger Article50 in the upcoming days. I don’t believe they will make any amendments to the white paper therefore the triggering of Article50 looks likely towards the end of March.
With exchange rates falling 26 cents from speculation, when the UK actually start the negotiations with EU leaders I expect further falls in the pounds value, making purchasing Canadian dollars more expensive. If you are purchasing CAD within the next 6 months it may be wise to purchase your Canadian dollars sooner rather than later.
Economic data releases to look out for this week
Tomorrow the UK release their latest GDP numbers. The consensus is for no change and therefore the release could be a non event. However with a slow down in wage growth and retail sales last week, we could see the third surprise in 7 days which would cause further losses for the pound.
Later in the afternoon Canada are set to release their latest retail sales numbers. A slight fall is expected therefore any losses from the morning could be reversed.
If you are buying or selling Canadian dollars this week, month or year and I haven’t covered your currency pair I would recommend emailing me with the currency pair (CADUSD, CADGBP, CADAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you [email protected]. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **