Sterling to Canadian Dollar exchange rate movements and the Scottish independence vote
Over the past few weeks there has been several events causing a great deal of volatility in the markets. We have seen the GBP/CAD exchange rates moving from highs of around 1.8220 to lows of 1.7570. To put these movements into real terms, a typical transfer of £200,000 would see you receive a difference of $13,000 CAD between the highs and the lows. In todays report we will look at what is causing these movements, where the rates may be heading and how to get the best exchange rate.
What is causing the GBP/CAD exchange rates to move?
Over the past few weeks there have been several events and pieces of news that have moved the GBP/CAD exchange rates dramatically. A couple of weeks ago the headlines were dominated by news from the Bank of England Governor, Mark Carney. His constant change in stance with regards to interest rate hike has caused Sterling to strengthen and weaken against its counterparts as he indicated one way and the other. He seems to have finally settled on early spring for the first time interest rates are likely to rise. If and when this does happen, we could see the Pound strengthen against its counterparts greatly, making it much cheaper to buy the Canadian Dollar among other currencies.
Recently, rate speculation has fallen into the background as we near the Scottish independence vote. It is today that the Scottish residence are voting whether or not to leave the United Kingdom. This, understandably is causing the rate to swing one way and the other as votes indicate a tight split. It will not be until tomorrow we know the outcome of this vote but the outcome will be eagerly watched by analysts. So what does this mean for your currency purchase? If Scotland does vote for independence, it is likely to weaken off sterling greatly. Although many argue that long term this may actually be good for the Pound, it is unchartered territory. The uncertainty over how this will effect things would cause investors to pull their money out of Sterling and into safe haven currencies like the USD where things are more stable.
As well as this news on the vote tomorrow there is some influential data out from Canada as well. This is in the form of Core CPI and Wholesale Sales. Both are forecast to show modest growth and could strengthen the Canadian Dollar. This will either add to the woes for sterling or help the GBP/CAD exchange rates remain stable in the light of the eagerly awaited news.
How do I get the best exchange rates?
If you are looking for the best exchange rates and would like a free quote on your currency purchase, .
We offer exchange rates up to 5% better than the high street banks, saving you money on your currency purchase. Your dedicated account manager will talk you through the whole trading process and ensure you have all the information you need to make an informed decision about when to buy your currency.
If you have a specific currency requirement or any questions, please don’t hesitate to contact me on [email protected] or call us directly on 01442 892060.