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Impossible question

  • Thread starter Thread starter LGR
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LGR

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Here's a question I wish I had a crystal ball for:

Over the last 5 years or so, the exchange rate CAD / £UK has steadily dropped from around $2.20 to the pound - to around $1.57 to the pound. This makes a huge difference to us when choosing the optimum time to relocate to Canada.

Anyone prepared to take a stab at what's likely to happen any time soon?
 
Yes - the rate swing over the last few years has been significant. I have been doing some part time schooling in the UK over the last couple of years and have really benefited from this.

Here's what I understand based on the reading I have done...

In the short term to medium term, the Canadian dollar is expected to retain its strength and stay strong against the US dollar. (Keep in mind that we did not have a real estate or banking crisis here as they did in the US and, to some extent, UK.) I'm not sure what this means for the British Pound. However I'm sure there are articles posted online regarding where the UK's economy stands and whether the strength of the dollar is expected to rise, drop or stay the same. So given that the Canadian dollar is expected to remain strong - I think you would want to definitely see a rise in the British Pound if you want to see rates improve.

But of course, no one can ever predict what will really happen...
 
Thanks for your opinions, much appreciated. I've scoured all the financial sites and so far no one seems to want to make a prediction.

Our issue is that we are just about ready to make the move (once my residency permit comes in - my wife is canuck ).....but the question is when?...go asap?...in case the pound against the dollar worsens................or wait?..and if we do wait...how long for?

The other issue of course is that house prices here in UK are not too good right now, so the same questions arise...and there's an additional question too...if we wait until UK house prices rise, will Canadian ones rise too?..if so..nothing gained
 
We have been through the same thought process but decided to 'bite the bullet' and just go. The lack of interest for money in our accounts here and the cost of, well, pretty much everything we feel that overall we will be better off even with the low exchange rate.
Basically I'd rather be low on cash in Canada than low on cash here!!
 
The only correct answer is that nobody without insider information can predict what will happen. The best predictor of any future exchange rate is the current exchange rate.
 
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