Welcome to Pure FX's latest update of the Canadian dollar to pound interbank exchange rate!
The loonie reaches for the sky versus sterling! The Canadian dollar to pound interbank exchange rate has hit 0.5880 in the last day, its highest in over 2 weeks, or since December 19th.
To put this into context, back on December 26th, the CA dollar was at just 0.5725 against the pound, so it's since recovered by more than +1.5 cents, or +2.7%.
At this 2-week high interbank exchange rate, CA$250,000 would be worth £147,000, or +£3,875 more than on December 26th!
So if you're a Canadian thinking of emigrating to the UK, or you’re importing British goods for your firm, this may be useful to you.
Pound Weakens, as UK Economy "in Holding Pattern"
The Canadian dollar to pound interbank exchange rate has reached this 2-week high, as the UK economy is "in a holding pattern", said the British Chamber of Commerce (BCC) this week.
According to the BCC's latest quarterly survey of UK firms, the number of services firms reporting rising domestic sales has fallen to a 2-year low, while difficulties finding staff are near all-time highs.
The director-general of the BCC Adam Marshall comments that the UK economy is "in stasis", as the UK may crash out of the EU in just 3 months time.
So this uncertainty has weighed down sterling!
Canadian Dollar Climbs, as Oil Prices Rises
Moreover, the Canadian dollar has reached this 2-week high versus the pound, because the price of oil, Canada's biggest export, has risen.
Yesterday, US crude prices climbed by +1.8%, to US$47.38 a barrel, even though there are concerns that the world's demand for oil may fall this year.
This has bolstered the loonie dollar, because when oil prices jump, Canada's oil exporters make more money from selling the black gold to international clients.
In turn, this accelerates Canada's economy growth, thereby lifting the value of the loonie dollar versus the pound sterling too!
Loonie Strengthens, as Bank of Canada May Lift Interest Rates
Furthermore, the CA dollar to pound interbank exchange rate has risen, because it's thought that the Bank of Canada (BoC) may soon lift interest rates.
The BoC makes its next interest rate decision next week, in which it's thought that Canada's central bank may lift borrowing costs by +0.25%, to 2.00%.
This is because Canada created a bumper +94,100 jobs in November, pointing to buoyancy in Canada's labour market.
In turn, higher interest rates make investing in the Canadian dollar more profitable, thus boosting demand for the loonie, and its value against the pound!
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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.