Surging oil prices continue to cancel out Sterling strength (Joseph Wright)

GBP EUR Exchange Rate: Weekly Review December 4th  

With Sterling’s recent bullish run against most of the majors beginning to slowdown, the recent strength of the Loonie is now easily visible, as this week GBPCAD is up just 0.13% whereas the Pounds gains against most other majors are considerably more significant.

Sterling’s fortunes have swung recently along with the ‘Brexit’ polls which now point to a ‘Remain’ lead. This sway in the polls has been very well received within currency markets, as GBPEUR is now almost trading at a 3 month high whereas just a couple of weeks ago the pair were trading at an annual low.

As previously mentioned, the Loonie has performed well against the Pound over the past few weeks, and this is down to CAD’s status as a commodity currency. As the price of oil per barrel has hit a 2016 high the Loonie has benefited, and this coupled with bullish remarks made by Bank of Canada Governor Stephen Poloz have increased sentiment towards CAD, hence it’s relative strong performance against GBP when compared with most other major currencies over the past few weeks.

With little to no UK or Canadian specific data out today I expect market sentiment to continue to drive GBPCAD exchange rates for the rest of the week, and I’m not expecting any major swings throughout today’s trading session. If you have an upcoming currency requirement involving GBPCAD it may well be worth your time getting in contact with me (Joseph Wright) on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.