GBP/CAD rates have taken another hit during Tuesday morning’s trading, as the markets digest the fallout from yet another terror attack in Belgium this morning. With confirmation of at least two separate attacks, our thoughts go out to the victims and families of those involved. It is clear that the current global climate is breeding fear into the markets and this will continue to increase the volatility we see over the coming months.
The Pound continues to find life tough going under the current market conditions and with the Bank of England’s (BoE) stance remaining negative, I do not anticipate a sustained improvement in the short-term. We have the on-going debate surrounding the EUR referendum in June and again this is likely to handicap any GBP spikes. With a poor run of economic data mirroring the current negative climate, I would not be gambling on a jump for GBP/CAD rates back above 1.90. In fact if today’s drop is anything to go by we may find that GBP/CAD struggles to hold its position above 1.80 over the coming weeks.
There has also been an improvement in Canada’s exports, which is major facet of their economy and despite last week’s poor inflation report, the CAD has held its position. Today is likely to be key with the latest with Canada’s Annual budget statement due to be released but based on today’s improvement, the markets are likely factoring in a positive outcome.
If you have an upcoming GBP or CAD currency requirement and wish to be kept up to date with all the latest market movement, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact us on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on [email protected]