It has been a rather interesting year for the pound against the Canadian dollar with GBP/CAD exchange rates moving by as much as 9 cents from the high to the low or the difference of CAD$9,000 on a currency transfer of £100,000. This highlights the importance of using a currency broker who can keep you updated with regular market movements on exchange rates.
Last week the Bank of Canada announced their latest interest rate decision and kept interest rates on hold at 1.75%. With 3 interest rate hikes in the last 18 months there was some expectation that the central bank may consider cutting rates but they ending up keeping them on hold.
Canadian GDP data is due out tomorrow and the expectation is for growth of 0.1% which is lower than the previous month which measured 0.3%. Clearly there is a slowdown happening in Canada at the moment but one of the reasons why the exchange rates are still maintaining their strength could be down to oil prices having risen recently.
US President Donald Trump has introduced sanctions on oil coming out of Iran so the reduced supply has increased demand and this has helped the petro-dependent Canada.
However, what is keeping the pound from making further gains vs the Canadian dollar is the lack of certainty surrounding that of Brexit. With the extension until the end of October I think the longer the delays continue the less likely we’ll see Brexit actually taking place.
At the moment there is not enough appetite for a second referendum but the longer things go on without getting closer to a conclusion I think we could see the British public getting fed up of the situation and could change their minds in the future as the suggested plans appear to not please many people.
Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident of being able to offer you bank beating exchange rates as well as helping with the timing of your transfer of money.
If you would like to discuss the factors that could impact your currency exchange, feel free to get in touch. I’ll be happy to respond personally and discuss your requirements.