Top emigration destinations hit by extreme currency volatility

Extreme volatility amongst some of the top destination countries for British emigres, but more positive news for holiday makers bound for Europe, as Sterling holds steady against the Euro, according to the latest HiFX Global Currency Moves Report.

Sterling surged against the Canadian Dollar in June to leave GBP/CAD as the most volatile currency pair in May. In contrast, GBP/NZD which was ranked second most volatile in May remained steady to become the least volatile currency pair in June. Overall Sterling held steady against the Euro, as good news from the UK economy continued and political concerns abated, so holiday makers heading to Europe can expect their pound to still stretch that bit further.

The volatility between Sterling and the Canadian dollar was fuelled by unusually strong comments from The Bank of Canada of the threat posed by the currency's sharp appreciation. In addition, Prime Minister Stephen Harper noted that economists now predict Canadian GDP to shrink even further than January's 2.7% sharp decline to a massive 4.3% by the end of the year.

On the other side of the globe, more positive news from New Zealand restored GBP/NZD to a more stable ranking at the foot of the volatility table. The NZ government reported a better than predicted fiscal position and the Central Bank left interest rates steady for the first time in nearly a year at a record low of 2.5%, whilst indicating that rates will remain at historically low levels for the foreseeable future.

Mark Bodega, Director at currency specialists HiFX comments: "The reversal of rankings between GBP/NZD and GBP/CAD in the volatility stakes in just a month shows how choppy the currency markets remain. Anyone transferring large amounts of money abroad, such as people emigrating, need to ensure they seek proper advice when transferring their assets abroad."