Market predictions are firmly focused on the upcoming UK Referendum due on the 23rd June but there are other events around to take stock of. From the Canadian dollar side the price of Oil is a huge factor in determining how the currency will perform. The market will be looking for clues from economic activity as to what they can expect in the future from Oil markets. Essentially an improving price of Oil is good for the Canadian dollar since it indicates that the Canadian economy will be doing well in the future. A falling or low price of Oil is bad for the currency since it makes it more likely the Canadian economy will struggle longer term.
With Oil flirting with 50 usd a barrel which is seen as an important level indicative of an improving outlook and good times ahead the exchange rate should rise. That is the rates for selling Canadian dollars for pounds will improve as the Canadian dollar becomes stronger. With the EU Referendum just around the corner market predictions are for sterling to fall so if Oil remains at elevated levels the GBPCAD rate could easily slip below 1.80. A vote to Remain and a falling price of Oil could see the rate fly back up over 1.90 with 2 not out of the question!
Making plans in advance is the best way to navigate the uncertainty so if you have a transfer to consider and wish for some market insight and the best exchange rates please contact me Jonathan Watson on [email protected] to learn more.