GBP/CAD rates have painted a concerning picture recently, but like the USD, have been one of the more stable pairings with the Pound than others in what has been a fairly tumultuous week for Sterling exchange rates.
The Pound has suffered repeatedly from hint after hint that the UK will not be stepping out from the shadow of historically low interest rates for quite some time. This was alluded to by the Bank of England last Thursday and has been compounded by successive data releases since then.
However, as the above pointed to, Canadian Dollar buyers have been some of the least effected by this news, largely due to events in Canada and the US.
The slide back in oil prices as always is a common feature as to when confidence in the Canadian Dollar begins to wane. Up and down like a yo-yo in recent months but struggling to climb higher for a sustained period, CAD buyers are lucky this has coincided with Sterling weakness.
Similarly, events in the US from the most recent but by far the most sustained scandal for Donald Trump is turning investor attention away from the US. Well, not necessarily turning attention away, but they are unwilling to jump into the pool until they see an end-game, and without demand for these currencies there will inevitably be a loss of value.
So this explains the current stalemate between the two currencies, so what next?
The likely deciding factor in the near term will be the UK election, which should be trending on rates by the end of next week if the General Election in 2015 is anything to go by.
This will likely dictate Sterling rates for the rest of the week, so anyone planning a transfer can contact me on [email protected] to discuss a strategy for your transfer based on the outcome aimed at maximising your currency return, whether this be buying or selling Canadian Dollars
I have never had an issue beating the rate of exchange offered elsewhere, so a brief conversation could save you thousands on a prospective transfer.