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As you can see from the graph below, the GBP/CAD exchange rates have fallen around three points this week before recovering back towards 1.65.
In today’s report we will look at what has been causing these movements and what up and coming events may change the amount you pay for your currency.
GBP/CAD exchange rate graph
Why have the GBP/CAD exchange rates moved?
After fears surrounding Brexit in the UK causing the exchange rates to tumble, those buying the Canadian dollar have had a change of fortune in the last few days. Tuesday saw the Canadian Trade balance figures released well below the forecast, at 0.9Bn.
This put the Loonie on the back foot but it was comments by one of the BoE MPC members that caused the spike in rates. There were hints that, in an effort to tackle inflation, the BoE may have to raise interest rates before the end of the year. This gave investors confidence in the pound and the exchange rates rose off the back of it.
What up and coming events may affect my currency purchase?
There are many global factors affecting the exchange rates. Canada has the ongoing problems in the Oil sector, which could take years to recover. The effects of Brexit are still ongoing and are likely to dominate headlines for some time to come. With a possible UK interest rate rise on the cards, up and coming elections across Europe and with a very unpredictable Trump now one of the most powerful men in the world, it is almost impossible to say where the exchange rates are heading.
Your dedicated Foremost Currency Group account manager can be your eyes and ears for the currency markets, keeping you up to date with the latest news and numbers affecting your currency purchase.
If you have an up and coming currency purchase, request a free consultation and find out more about how we can help you today.
Why use Foremost Currency Group to transfer your money?
Using a specialist currency broker like Foremost Currency Group could save you thousands on your overseas purchases. Whether you are buying a property abroad, paying foreign suppliers or just topping up an overseas account, we can help save you money.
We offer commercial rates of exchange, much better than your high street bank and have contracts to suit every requirement.
Opening a trading facility does not cost or obligate you in any way and should only take a couple of minutes online.
Alternatively, if you just want a free quote on your currency purchase, or would like to know more about how we can help, contact me directly on the details below or complete the enquiry form.
T: 01442 892 060