Best rates since December for Canadian dollar vs the pound
The pound has once again fallen against the Canadian dollar as the leadership campaign in the UK has got started. We now have a situation with 10 candidates all vying to be the next leader of the Conservative Party. The voting will start on Thursday of this week. All Tory members will then vote for their number one during the next two weeks. The aim will be to get this number down to the final two by 20th June. Then, approximately 160,000 members will vote for the winner. The news will likely be released at the end of July. This has caused the value of sterling exchange rates to fall. In fact, we are now at the best rate to convert Canadian dollars into pounds since December 2018.
Negative economic data causes pound to fall against Canadian dollar
The pound has also fallen owing to some very poor economic data. UK car production caused the economy to contract to just 0.1% in April in May compared to the month before. This highlights the problems that the UK economy is facing caused by the uncertainty of Brexit. Indeed, the production of cars was the lowest last month since records began. This was expected as many car companies had planned shutdowns in April. This was because the UK was previously expected to leave the European Union at the end of March.
Positive UK Unemployment data
UK unemployment data helped the pound to stabilise against the Canadian dollar this morning after some strong figures. Unemployment data has been the shining light of the British economy for years so this helped to support sterling exchange rates. There is little other economic data due out this week for both the UK and Canada, so the focus will remain on the political landscape in the UK. If we continue to see problems within the Tory Party, this could cause the pound to suffer even further against the Canadian dollar.
Therefore, it may be worth buying your Canadian dollars in the near future to avoid any potential further losses for the pound.
If you would like a free quote when buying or selling Canadian dollars and would like to save money compared to using your own bank, then contact me directly and I look forward to hearing from you.