GBP/CAD over 2.0 after Canada lowers interest rates
The Sterling to Canadian Dollar cross has already had a good run this week with exchange rates climbing dramatically. Today we saw them rise further as the Bank of Canada Governor, Stephen Poloz, announced they have cut its interest rates from 0.75% to 0.5%, slashing the countries economic outlook. This was the second rate cut of the year to shock the markets, after the first 0.25% cut in January with no warning. This move was down to further falls in oil prices and its manufacturing sector failing to compete with the growing competition from Mexico.
This was following the news that the Bank of England Governor, Mark Carney earlier this week, suggesting they will look at raising interest rates much sooner then predicted.
Those of you who are regular readers will know I have said it was only a matter of time before the GBP/CAD exchange rates pushed through the 2.0 level once again and now the time has come.
If you would like to take advantage of these recent movements, contact your dedicated account manager today. If you don’t have a trading facility with the Foremost Currency Group, click the link to get started today. Opening a trading facility does not cost or obligate you in any way and only takes a couple of minutes online.
For those of you waiting for the rate to fall back before selling your Canadian Dollars should be very cautious. We are now returning to the pre-recession levels of 2006. Before the global crises the GBP/CAD exchange rates were trading around 2.25 and there is no reason they wont return to these levels again, if not climb higher.
If you would like a free quote on your currency purchase, contact me on the details below and find out how much we could save you today.
Written by: Richard Beaumont
Email: [email protected]
Telephone: 01442 892060