After weeks of added expense from a resurgence in oil prices, alongside the anchor placed on Sterling from a shambles of an election, buying Canadian Dollar exchange rates may finally be heading back in a positive direction.
Whilst the Pound is in limbo once more with the announcement of a new government partnership between the Tories and the DUP delayed (due to the awful events in London yesterday, and conflicting diaries until the end of the week), the economic argument will come to the fore anyway, with the UK releasing their latest interest rate decision and well as monetary policy statement.
Don’t yawn, this will likely be affecting anyone buying or selling Canadian Dollars with the Pound.
The UK has been moored at a historically low interest rate of 0.25% since the Referendum. Yet there are a few murmurs asking for rates to rise. Any such move will as a rule of thumb will increase the value of the currency in question.
Why are rates potentially rising in the UK whilst uncertainty from the Brexit and Referendum is so high? Inflation. We are now at 2.9% for the year when the Bank’s target is 2%. If prices are rising too fast they normally wish to step in and control this. One major tool to do this is to raise rates, encouraging people to spend rather than save.
Whilst I am not expecting an interest rate hike today, it is likely that rates will be rising in line with the vote split between the Bank of England members. If even one more person voters for a hike, then GBP/CAD rates should be boosted.
I strongly recommend that anyone with a buying or selling Canadian Dollar requirement should contact me on [email protected] to discuss a strategy for your transfer aimed at maximising your currency return.
I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could protected your exposure to a volatile marketplace with the options I offer, and save you significant sums on your Canadian Dollar purchase or sale.