GBP/CAD rates have improved over the past 24 hours, bringing some much needed respite to those clients holding Sterling. The Pound has been under a huge amount of pressure since last Thursday’s EU referendum, when 52% of the country voted for the UK to leave. This sent shock waves through the market and the Pound has suffered against every major currency as a result.
Whilst this was not surprising considering the markets stance was very much pro remain, the decline has left many wondering why the decision turned out as it did and what this meant for the future of the UK economy. Certainly the uncertainty it has created, both economically and subsequently politically, is the main driver behind Sterling’s decline. The markets and investors alike currently have no indication of future policies, or even how the fundamentals of our Brexit will work. Once this uncertainty is removed we may well see further recovery but for the time being I expect the CAD to find support under 1.80 on the exchange.
The Bank of England (BoE) and other key institutions have reaffirmed their commitment to bringing stability back to the UK economy and it seems as through the markets have reacted somewhat positively to this, with Sterling recovering over a cent during Wednesdays trading. Whether this improvement is sustainable is up for debate but it does seem as though Sterling is finding some level of support.
If you have an upcoming GBP or CAD currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on [email protected]