Welcome to Pure FX's latest update of the pound to Canadian dollar interbank exchange rate!
Sterling jumps versus the loonie! The pound to Canadian dollar interbank exchange rate has hit 1.7271 in the past day. This is its highest in over 1 week, or since January 30th.
By contrast, back on February 5th, the pound vs Canadian dollar rate was as low as 1.6988. So it's since risen by +1.66%, or over +2.75 cents.
To put this into context, at today's interbank exchange rate, £250,000 would be worth CA$431,775. This is CA$7,075 more than on January 5th!
So if you're a Brit thinking of emigrating to Toronto, Alberta or Montreal, this may help to transfer money to Canada.
Pound vs Canadian Dollar Rate Rises, as Oil Price Falls
The pound to Canadian dollar interbank exchange rate has touched this 1-week high, because the price of oil, Canada's biggest export, has fallen. In particular, US crude oil futures have fallen by -2.5% this week, to just $52.64 a barrel.
As a result, Canada's oil refineries will make less money from selling their black gold overseas. This may weaken Canada's economy.
Already in recent months, Canadian oil companies in Alberta have had to cut production, as oil prices fall.
Oil has got cheaper, as it's feared that a global economic slowdown may cut demand. This is weighing on the CAD!
GBP to CAD Exchange Rate Climbs, as BoC Warns on Investment
What's more, sterling has also strengthened versus the Canadian dollar, because the Bank of Canada (BoC) has warned of slowing business investment in Canada's economy.
This Wednesday, at a speech in Washington DC, BoC deputy governor Timothy Lane said that America's trade uncertainties are weighing on Canadian businesses' willingness to spend.
In particular, CA business investment is currently "below" what you'd expect, given Canada's economic fundamentals, said Mr. Lane.
This is resulting in "temporarily slower" growth, so lifting the pound vs Canadian dollar!
Sterling Jumps Versus Loonie, on Fears of Canada Slowdown
Moreover, the pound to Canadian dollar interbank exchange rate has also risen, because there are growing concerns over Canada's economic growth.
For instance, this week the Ivey PMI, indicating business activity in the USA's northern neighbour, fell to 54.7 in January. This is below the 56.0 forecast, and closer to the 50.0 figure that signals stagnation.
In addition, it's thought that Canada's consumer spending fell to its weakest since 2009 last year, say new statistics.
Also, Canada's housing market is slowing, making Canadians feel less wealthy. So this is dragging down the CAD too!
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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.