What is moving the rates this week
This week there is plenty of influential data being released that could move the exchange rates dramatically. The headlines, however, have been dominated by the news of a possible British exit from the EU, as David Cameron has announced the referendum will be held on the Thursday 23rd June 2016.
Before we delve into the major questions, let’s look at how the GBP/CAD exchange rates have been performing so far this week. As you will see from the graph below, Sterling has been suffered greatly due to the risk of a British exit. Prices started in the high 1.98s before dropping to lows of just over 1.92 following the weekend’s negotiations. To put this into monetary terms, a typical property purchase of $250,000 CAD would cost you over £4000 more today than the same trade Monday morning.
Will Britain leave the EU?
At the moment, this is the million dollar question. There are many arguments being thrown around with the likes of BT, Marks and Spencer and Vodafone now campaigning for the UK to leave the EU, stating it would deter investment in to the UK. The argument is far from one sided though, as fund managers, FTSE 100 companies and now important figure heads such as Boris Johnson, urging the public to vote to leave the EU.
What ever your currency requirement, this news could effect the amount you pay for your currency. Get in touch for a free consultation to discuss how this may effect the amount you pay.
What does this mean to me?
If you have an up and coming currency requirement, the referendum means one thing – volatility. Whether you are buying or selling a currency in the near future, this announcement could effect the amount you pay dramatically. Opinions are very varied, as some say an exit would cause the pound to lose around 20% of its value instantly, where others are predicting the pound to strengthen as it would be seen as a new “Save Haven” for investors.
If you have a currency requirement, the amount you pay for your currency will change dramatically and choosing the best time could become hazardous. Speak with one of our dedicated brokers and keep up to date with the latest news affecting the markets.
Opening a trading facility does not cost or obligate you in any way and only takes a couple of minutes online. Alternatively, if you just want a free quote on your currency purchase, contact me directly on the details below.