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Since the tail end of last year, we have seen the sterling to Canadian dollar exchange rates fall away from highs around 1.70 to recent lows in the 1.57s.
To put this into real terms, a typical transfer of £250,000 would see you receive a difference of over $30,000 between the highs and the lows of just the last few months.
If you would like to discuss where the exchange rates may be heading or how it may affect your currency purchase, request a free consultation today.
GBP/CAD exchange rate graph
What has caused the fall in rates?
From the sterling side of the cross, the UK has been struggling to find strength recently, brought around by fears and the uncertainty surrounding Brexit. As you will see from the graph, we have seen a slight recovery recently, as hints of an interest rate hike from the BoE gave the pound hope. The chances of a rate hike have now been greatly reduced and sterling has started to slide away once again.
It is not just sterling weakness that has caused the fall in rates, as the Loonie has found great strength from a recovering oil market. A huge glut in supplies caused the price of black gold to reach record lows. Given the Canadian economy is so heavily reliant on the sales of oil, it hit the Loonie hard.
The OPEC nations agreed to reduce the supplies to ease the pressure of prices. This has given the Loonie a well needed boost, bringing rates down further.
How do I protect my currency purchase?
If you have an up and coming currency purchase and are worried about the exchange rates moving against you, we offer various contract to help protect your purchase. Request a free consultation and find out how we could help today.
We allow you to target a better rate of exchange than is currently available, while protecting yourself if the market moves against you. You can also lock into a rate of exchange for up to two years into the future. This means you can budget effectively, within your time scales.
If you want to find out how much you could save, request a free consultation today. Alternatively, click the link to open a free, no obligations trading facility.
T: 01442 892 060