GBP/CAD Rate Jumps Over 1% Today (Ben Fletcher)

Canadian Dollar Suffers Seven-Week Low Following the Spread of the Coronavirus

Sterling has gained 4 cents against the Canadian Dollar since yesterday lunch time as there appears to be more certainty forming with the announcement of a new British Prime Minister. Theresa May tomorrow afternoon is going to take over from David Cameron and it will be interesting to see where she starts.

May has been quite explicit in suggesting that she will not enforce Article 50, which starts the process of the UK leaving the EU. Instead she will wait and allow the dust to settle before causing any further shocks to an already rocky road.

Thursday will bring an interest rate decision from Governor Mark Carney and the Bank of England. There is currently a high expectation that there could be a cut by 0.25% however the late rally for Sterling and a jump to in the FTSE to an 11-month high may change opinions. Sterling could continue to rise towards the end of the week as the Loonie suffers as oil prices suffer.

The cost of Oil has fallen since the opening of more US oil rigs off the back of the price rising above $50 a barrel. However OPEC today released a report which has suggested there will be a greater supply for oil in 2017, which may bring the inventory levels more inline. In the short term Saudi Arabia has nearly pumped their record high for barrels in the month. In a market that’s already flooded with oil, this could cause further anxiousness.

The Canadian Dollar so heavily affected by the price of Oil could start to lose a lot of the gained ground in recent weeks if Sterling gains strength and oil starts to drop once more.

As a trader in a brokerage I am able to help you achieve the best rates possible, whilst also assisting with the timing of a transaction to make sure you get the most for your money. If you do have a currency requirements please feel free to send me Ben Fletcher an email at [email protected].