You may consider yourself a savvy buyer, especially in the currency purchasing market. But there can sometimes be unseen news or recent events which may alter the going rate of your chosen currency.
The Canadian dollar shares a relationship with the British pound amongst many other currencies. This relationship is altered based on many factors, some in which may determine a great time for you to buy Sterling or show signs that it may be right to hold off a little before departing with your hard-earned Canadian Dollars.
Political events can be a key player in determining the rate of a selected currency, and if you prefer to shy away from the events of politics, this article might just help you out a little.
1. The unfolding of Brexit
This is a topic that many analysts and buyers are keen on keeping on top of. The difficult part is that no-one really knows what will happen. This uncertainty has led to gains and losses in the GBP as people begin to back the Pound and then subsequently lose faith in it, dropping the value. This volatility influences the CAD/GBP rate and has left buyers a little in the dark when going to purchase GBP with Canadian Dollars. So be sure to keep up to date on the ever-evolving plans for the UK’s departure from the EU before buying.
2. The outcome of Brexit and general election
Just as Brexit causes volatility with the CAD/GBP pairing, the general election will also continue that trend. Experts predict that the outcome of the general election is going to be difficult to predict as there are many factors which play into the outcome. In recent unfoldings, the Brexit party leader, Nigel Farage has attested that his party will contest for more than 600 seats in the election. This news comes after he accused the Tories of ‘conceited arrogance’ after asking the Brexit party to stand aside. This is sure to cause a few twists in the Tories ideal plans for the 12th December election and will be another factor to keep an eye on if you’re looking to buy GBP with your CAD.
3. US-China trade talks
The US has been holding talks with China over potential trade deals. Both countries are economic powerhouses and any changes in their cooperation whether it be for better or worse are likely to have an impact on currencies around the world. Reports have suggested that the talks are encouraging between Trump and Xi, this could significantly bring up the USD, which has a close link to the Canadian Dollar. The Cad could benefit from this and strengthen itself, giving more of a return when buying GBP.
If you would like to know more about the factors influencing the GBP/CAD pairing or have an upcoming currency transfer, you can contact one of currency specialists using the form below.