Today we saw the latest inflation numbers form the UK, with Consumer Price index coming in above forecast at 2.7%. Despite this we have still seen the GBP/CAD exchange rates fall away.
There are two main reasons for the fall in rates, the first being the recovering oil market. Black Gold is Canada’s largest export and the huge fall in oil prices, hit the Canadian Dollar’s value hard. Now there have been further agreements to cut output production, this should help the oil price recovery further, and the CAD with it.
Looking at the other side of the cross, there are a number of factors weakening Sterling. The up and coming Brexit negotiations are one obvious factor. The general elections are fast approaching us and media tearing apart manifestos.
The latest factor however, is the Bank of England and interest rates. Despite inflation rising, the BoE have indicated there may not be an interest rate rise until 2019. The one MPC member that has been voting for a hike will be stepping down shortly. This is making the Pound less attractive to investors, weakening it against its counterparts.
EUR/CAD breaks through 1.50
We have seen the EUR/CAD exchange rates test the 1.50 level several times over the past few weeks. Now the resistance levels have been broken, the rates moved swiftly to around 1.51 mid market. This is largely down to EUR strength following the French elections, although with Greece slipping back into a recession, we could see the single currency destabilise once more.
Sending Canadian Dollar abroad
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Alternatively, if you would just like a free quote on your currency purchase to find out how much you could save, request a free consultation today or contact us directly on the details below.
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