What has caused pound to Canadian dollar rates to weaken?
The Canadian dollar has been improving against the pound recently owing to a number of different reasons. If we look closely at the Canadian dollar it has felt the benefit of an interest rate cut expectation south of the border in the US. This has seen a sell off for the US dollar and investors have chosen to move funds into the Canadian dollar. GBP/CAD exchange rates have now fallen below 1.70 and I think we they could still have further to fall.
UK politics causes pound vs Canadian dollar exchange rates to move
The UK’s political landscape is in tatters at the moment. With Theresa May having announced her resignation recently the search is now on for a new Tory leader. At the moment a total of 13 names are in the hat. It is still unclear as to who may be the leader and we may not find out until the end of July. This is likely to add pressure on to an already unsettled sterling so we could see further losses ahead.
What does appear to be the case is that a number of the potential leaders are pro-Brexit. This may mean that the pound could go either way once a victor has been announced. It could mean that a Brexit deal could be more likely, which could help the Pound as it may provide more certainty. However, on the flip side it could move us closer towards a no deal Brexit which could result in a problem for Sterling.
If you’re in the process of buying Canadian dollars it may be worth getting this organised in the short term. I think we could see further problems ahead especially whilst the leadership election takes place.
If you would like to save money on exchange rates when buying or selling Canadian dollars and would like a free quote then contact me directly and I look forward to hearing from you.