The Canadian Dollar has remained relatively unchanged against the US Dollar but has started to make some small improvements vs the Pound.
With tensions rising concerning the US Trade Wars, combined with the uncertainty of the NAFTA talks the chances of an interest rate hike at next month’s meeting appear to have reduced but there is still a 50% chance of this happening.
Bank of Canada Governor Stephen Poloz will be addressing the markets later on today to hopefully provide some insight into what the Bank of Canada will do with monetary policy going forward.
Oil prices have also been rising recently and this has helped the Canadian Dollar improve against the Pound.
However, one concern for the economy is that Canada could be losing a large portion of its oil supply after a problem at one of the production plants in Alberta.
As we turn the focus to what is happening with Sterling we are in for a couple of busy days for the UK.
UK GDP data for the first quarter is due out on Friday morning and will be the final revision. The current figures show growth of 0.1% so any change could provide a lot of volatility for Pound vs Canadian Dollar rates.
Also over the next couple of days the EU summit will be taking place, and top of the agenda will be the migrant crisis across Europe as well as the latest developments on the Brexit process.
With Theresa May having just scraped through successfully with the EU Withdrawal Bill last week, there is still a bit of public concern about what may happen with the outcome of Brexit over the next few months and a rally was held in London with approximately 100,000 people attending highlighting some social unrest.
To end the week Friday brings with it the latest Canadian GDP data so expect to see a very busy end to the week for GBPCAD exchange rates.
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