CAD Decline Continues (Matthew Vassallo)

Resilient Canadian Dollar Faces Week of Influential Data and Bank of Canada Policy Decision

GBP/CAD rates have spiked over the past month, with the CAD coming under increasing pressure. The Pound has benefitted from two recent polls, which indicated the Remain camp now has a clear lead ahead of next month’s EU referendum. This is a key date for investors and is likely to shape Sterling exchange over the coming months.

If we do stay it is likely to solidify the Pound’s position but if we were to leave then this is likely to knock Sterling’s value in the short-term. I’m expecting further volatility over the coming weeks and I wouldn’t be surprised to see further polls indicate the gap has narrowed. Either way the markets are going to have to at least price in the possibility of a Brexit, so I would be wary about assuming the current GBP strength will continue without response.

The recent spike on GBP/CAD is not just attributed to Sterling support. The CAD has struggled in line with the Canadian economy since the huge fires in Alberta, which cut their ability to supply crude oil, one of their main exports. This is likely to handicap any major advances for the CAD for the time being, so any clients holding the currency may wish to protect themselves against further market losses.

If you have an upcoming GBP or CAD currency requirement then feel free to contact me to discuss the current market conditions and forecasts ahead of your exchange. I can be reached on 0044 1494 787 478 and just ask one of my team for Matt. I would also be happy to provide you with a comparable quote against your current provider and if you would like to contact me directly I can be emailed on mtv@currencies.co.uk