Yesterday we had confirmation that Theresa May’s lead Tory party had finally come to an agreement with the controversial Northern Irish DUP party, to form a working UK government.
Whilst details about the arrangement were vague, it was confirmed that Northern Ireland will receive an additional 1 billion in funding, news which has caused unrest among many due its perceptive disparity.
However, the announcement has helped to curb further losses for the Pound following its recent downturn. The Pound has been marooned under 1.70 against the CAD for some time, despite the CAD suffering against other major currencies, including the USD, due to the recent and sudden fall in crude oil prices.
Canada is one of the world’s largest exporters of crude oil, so any fall in value or slowing global demand inevitably has a negative effect on the Canadian economy and ultimately the CAD.
The reason that we are seeing the CAD hold its value against Sterling, is in the most part due to the recent political vacuum. This was created by the UK’s recent general election results, which backfired on Theresa May spectacularly and the ongoing uncertainty surrounding Brexit.
With the UK’s hand weakened before negotiations had even started and with Brexit negotiator David Davis already having to concede ground so early on in the talks, many investors are shying away from the Pound.
With so much uncertainty surrounding the whole process, I would be looking to protect any short-term Sterling positions around the current levels. Any further negative media reports regarding the UK economy will likely only heap further pressure on Sterling and despite the concerns mentioned above regarding Canada’s export industry, I still feeling the Pound is considered the risk option at present.
Now is the time to contact a personal currency broker and here I can help guide you through this turbulent market. I assist my clients with the timing of their currency transfers, to ensure that any market value is maximised.
We can offer award winning exchange rates & service, which surpass any of our competitors.
Please feel free to contact me if you would like to be kept up to date with all the latest market movements, or simply wish to compare our rates to those of your current provider.
I am available on 0044 1494 725 353 between 08.30-18.00 and just ask one for the team for Matthew. Alternatively, I can be emailed directly on [email protected]