The rate to buy Canadian Dollars with Pounds has hit its lowest level since early March as it continues to strengthen owing to the recent interest rate hike in Canada.
The Bank of Canada raised the interest rate from 0.5% to 0.75% and with oil prices going in an upwards direction as the Canadian economy is heavily reliant on oil exports this has helped the Canadian Dollar strengthen vs the Pound.
Oil prices have hit a 6 week high recently and if this continues I expect the Pound to fall further against the Canadian Dollar.
With the recent interest rate hike appearing to be relatively successful there is a chance that we may see another rate hike coming later on this year which could provide considerable support to the Canadian Dollar in the longer term.
Next month the Canadian Dollar could be in for a rather volatile period when the North Atlantic Free Trade Agreement will be discussed. A couple of months ago we saw a dispute between Canada and the US concerning lumber imports and it was eventually settled with tariffs imposed on lumber coming in to the US.
If we see problems from this meeting then this could cause a period of uncertainty for the Canadian Dollar but in the short term I expect to see the Pound continue to struggle as the issue of Brexit continues to loom over the UK.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency.
A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on [email protected] and I will endeavour to get back to you as soon as I can.