Oil price likely to determine GBP/CAD exchange rate this week (Joseph Wright)

GBP EUR Exchange Rate: Weekly Review July 16  

Those following the GBP/CAD rate closely will be aware of the strides Sterling has made against the Canadian Dollar as of late, although with so many different factors affecting the pair it’s difficult to gauge whether this tend will continue.

GBP sellers may wish to consider the current level as favorable when we consider that GBP is trading around a 3 month high against the Loonie which is surprising when we consider that the UK public is due to vote on its political future next month.

Political uncertainty has historically weighed on the underlying currency but as prominent pollsters and bookies suggest that a ‘leave’ vote is becoming more and more unlikely, we’re witnessing strength in Sterling across the board which has caught many by surprise, myself included.

As a commodity currency the value of oil usually ties in with the value of CAD, and I think due to the recent wildfires and the knock on effects to the Canadian economy, that relationship is magnified at present with some analyst suggesting the costs the Canadian economy are in excess of $985m.

News events likely to impact GBPCAD this week consist of Thursday’s GDP figures for the UK and a Canadian Interest rate decision on Wednesday. Feel free to get in contact if you would like to discuss these releases in more detail.

If you have an upcoming currency requirement involving GBP and CAD it’s worth your time getting in contact with me 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.