Welcome to Pure FX’s latest update of the pound to Canadian dollar interbank exchange rate.
Sterling triumphs versus the loonie! The pound to Canadian dollar interbank exchange rate has hit 1.7276 today, its highest in 7 months, or since September 15th last year.
The pound has climbed against the CA dollar, because the price of oil, Canada’s biggest export, fell almost -4% yesterday, its sharpest fall in 7 weeks, to just $50.28 a barrel.
In particular, the oil price has fallen, because crude production in the USA has risen to 9.25 million barrels a day, thus lifting the global supply of oil and cutting its price.
This has weakened the Canadian dollar, first because, if the oil price falls, Canada makes less money from its oil exports, thereby slowing Canada’s economy.
This has also dragged down the loonie dollar, because there’s a significant chance that the oil price may fall further, as US fracking further lifts global oil output!
Pound strengthens, as May calls snap election
What’s more, the pound has also strengthened against the Canadian dollar, because this week prime minister Theresa May called for a snap election to be held in the UK, on June 8th.
This has lifted sterling, first because Mrs. May’s Conservatives are riding high in the polls, so this election may give the prime minister a larger mandate to secure her vision of Brexit.
This has also boosted the pound, because if Mrs May wins more seats at this election, she’ll be less bound to the hardliners in her party, who want a ‘hard’ Brexit at all costs.
According to analyst George Saravelos, this snap election is a “game changer” for both the UK economic outlook and sterling, as there’s less of a “crash risk” for the Brexit talks.
With all this in mind, sterling has hit this 7-month high versus the Canadian dollar!
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Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email firstname.lastname@example.org.