GBP has lost almost 1% of its value against CAD today, but why?

Probably got something to do with oil and the fact that US consumer spending is up. Who knows really

And that we are in a huge state of market flux.........record gains then record loses.

Gordon Brown hasn't done something stupid again, has he?

Surely that's just the normal market expectation and is already priced in.

Investors are probably not too enthused about the pound at the moment.

A correlation no doubt. Oil down CAD weakens..

Down around 7c in the last week (and a chunk of that is today) - that's quite a steep fall in a short(ish) time. I can't think of any *good* reasons why, but then I was a bit surprised to see it get to above 1.90 in the first place. I don't think anything has fundamentally changed for the better or worse in either economy has it?

Think it's more to do with CAD strengthening - basically on the back of some good results pushing equities higher, and then a poll of economists released with positive outlook for 2010.... so pretty much a lot of thin air & crossed fingers.....

It'll remain volatile for some time yet.

There has been lots of 'green shoots' type talk in both places, but the talk isn't backed by anything in particular (my gut feeling is that CAD is undervalued, but that isn't backed by anything either). Anyway - as you say, volatile.

Hi Alan, I'm no expert on this but would appreciate some direction..CA is commodity rich and generally the money markets are driven my change in the commodity prices as well as cc. Oil is taking a pill so why is the Looney not taking a chuffing. 85% of exports go south of the line, i.e lumber and such like, so why can the CAD keeping keeping it's knickers up..Does not make sense to me..

And another thread starts heading southward at a rate of knots.

Me neither - the FX market can behave inexplicably for long periods of time and if I knew what was going to happen I wouldn't be telling you I'd be rich. Saying that I don't think CAD has kept it's knickers up particularly - it wasn't long ago that it was parity with USD and oil has recovered a bit from the very lows.

As for GBP, just from talking to friends in the UK, the recession seems a lot worse in the there than here and this is why I am more bearish on GBP than CAD - however the market don't give a shit about my opinion and so we'll just have to wait and see.

Oh I don't know. It beats reading pages of Brownstar and FlirtyKnickers tossing each others salads (and I think I'm starting to like this Tony guy as odd that may seem)...

Good point .

I'm just glad I transferred another few thousand pounds over last week when it was $1.90-ish!