Welcome to Pure FX's latest update of the pound to Canadian dollar interbank exchange rate!
Sterling climbs versus the loonie! The pound to Canadian dollar interbank exchange rate has hit 1.7723 today, its highest in over 10 months, or since April 27th 2018.
By contrast, back on August 15th last year, sterling was as low as 1.6606 versus the CA dollar, so it's since risen by +6.72%, or over +11 cents.
To put this into context for you, at today's interbank exchange rate, £250,000 would be worth CA$443,075, or +CA$27,925 more than on August 15th!
So this could be of interest if you need to transfer money to Canada, such as if you're a Brit thinking of emigrating to Montreal or Ottawa this year.
Pound to Canadian Dollar Rate Rises, as BoC Pauses
The pound to Canadian dollar interbank exchange rate has reached this 10-month high, first because the Bank of Canada (BoC) held interest rates on pause yesterday, at 1.75%.
In particular, Canada's central bank said that there'd been a "sharper and more broadly based" slowdown in Canada's economy than forecast at the end of last year.
As a result, "it will take time to gauge the persistence of below-potential growth," added the BoC, justifying the bank's decision to keep interest rates steady.
This bodes ill for Canada's economy in 2019, thus weighing down the CA dollar!
GBP to CAD Rate Climbs, as Canada's Economic Activity Slows
What's more, sterling has touched this 10-month high versus the loonie dollar, partly because Canada's economic activity slowed notably in February, says a trusted new survey.
According to Ivey's monthly poll of Canada's economic output, activity fell to just 50.6 last month, close to the 50.0 figure that signals growth, as well as forecasts for 57.9.
This figure is a 5-month low, the weakest since September last year, suggesting that Canada's economic slowdown has continued into the early months of 2019.
This may make investing in Canada less attractive, and so has hurt the CAD!
Sterling Flies Versus Loonie, as Canada's Trade Deficit Expands
Furthermore, the pound to Canadian dollar interbank exchange rate has climbed, for reasons including that Canada's trade deficit expanded well beyond forecasts in December.
To be specific, Canada's international merchandising trade fell to -CA$4.59 billion at the end of last year, said Statistics Canada on Wednesday, far beneath predictions for -CA$2.8 billion.
This is Canada's 5th consecutive monthly decline in its trade balance, driven by a -3.8% drop in exports, and was close to Canada's biggest trade deficit since the late 1990s.
This too may slow Canada's GDP growth, which could adversely affect the loonie 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.