CAD GBP Exchange Rates

[ugly_90]

I know I'm opening up a can of worms here, but I do note our place in history now, although I can't predict foreign exchange markets.

I would venture that we are at a long-expected divergence in Canadian and American economies. Population adjusted,  The Canadian one has had only minor job gains, and the American one has larger. The American central bank seems close to raising rates for a long time now, and the Canadian central seems focused on keeping rates stable or lowering; if allowed the choice. The pound has had a tumble since Brexit, and it's hard to call a bottom, but there's some concern it is now undervalued, perhaps even more so given current EU news.

Lots going on, but what does this have to do with landrover?

I'll be stuck to this prediction, but I could see the USD strengthening in coming months, the CAD weakening, and the GBP strengthening.

All this could make UK orders a bit more expensive soon. Given that much of the landrover parts in the UK are made overseas, there still hasn't been much time since Brexit for those in-stock parts to be re-priced.

Given time, should the pound happen to fall further, the discount may be lost, as those foreign parts may need to be re-priced.

I have said it before, but I don't see the strength in CAD remaining. Buy your parts sooner, rather than later.

[Trevor]

It's a tricky game trying to predict currencies. I've been trading them for 25 years and I don't try to...or at least I won't put my money on what I think they'll do. Rather, I just identify when a trend is in place, long or short, and get in then. Currently the only trend in any of them is the GBP, and that's down. USD and CAD have chopped sideways for a while now.

That said, if I were to give a prediction (read: blindfold on, throw dart at dartboard, then guess!), I'd expect the CAD to weaken further (1.40 USD/CAD isn't unreasonable imo within a year), GBP weaken further, and the USD to stay range bound for some time to come. I don't think the Fed will raise rates, they're trapped by their own ineffective policies and REALLY outdated models. Besides, the US is seeing the worst employment data in generations, with participation levels lower than before women entered the workforce on mass. I can't see them raising again in that environment...one and done.

[Alex C]

Expat logic

If the GBP gets stronger, then all Landrover Treasure  in CANADA is worth more C$ so is worth more in trades, this equals a proven investment so buying more from the UK is just a further investment regardless of the exchange rate.

Example if you had purchased 10 Sankeys and 10 sets of defender front doors 10 years ago, regardless of exchange rates, you would have a solid investment, I think i may need a better padlock for my shed.

Geordie financial theory, you well never see Tax, Season Tickets,  Beer, Tools or Land Rover parts get cheaper or loose their value, all of these items are Solid Investments.

[ugly_90]

Yes, Alex's economic theory here falls more in the pirate area.  ;)

I do miss the economics of nearly a dozen sankeys though, and then trading them between other expat Geordies and Yorkies, whilst arguing over price and delivery. hehe. They say that copper wire was a scottish invention in a fight over a penny. I tend to think it was a little farther south.  ;D

I'm sure everyone interested will have their eye on the exchange rates in near future.