Now that UK Prime Minister Theresa May has triggered Article 50 the question is where next for GBPCAD exchange rates? Yesterday the pound didn’t show a steep decline that many economists had predicted and actually rates have dropped by only 1 cent since the Prime Minister sent the letter to Brussels stating the UK would be starting the process of leaving the European Union.
Now that the Conservative Government have confirmed they will be giving a running commentary of how negotiations are unfolding, I expect the pound could rise and fall depending on each update that is given. Longer term it is very difficult to predict if exchange rate will rise or fall as we do not know if the UK will get the deal that they are after.
However for Canadian dollar sellers that are purchasing sterling you have to seriously consider the falls we have witnessed since the UK decided to leave the European Union. Exchange rates have dropped a staggering 35 cents (13%), which means a £200,000 purchase is now just over 50,000 Canadian dollars cheaper.
In other news economic data clients should look out for when converting GBPCAD short term are GDP numbers released for the UK and Canada released Friday. GDP is a key barometer to the health of the economy and any fluctuations from the expectation can cause major swings with exchange rates.
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@example.com. 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! **