GBP/CAD rates remain marooned under 1.75 on the exchange, with the Pound struggling to continue its recent advances. The pair are current trading around 1.73 but despite yesterday’s better than expected UK Gross Domestic Product (GDP) figures, Sterling struggled to sustain this improvement.
The UK economy remains extremely fragile in the eyes of investors and I cannot see any major improvement until we have a clearer picture of how, and when the UK intends to facilitate its exit from the EU. We also have to consider the very real possibility that the BoE will cut interest rates early next month and with another potential rescission looming, the economic outlook for the UK is hardly ideal. That said it will not all be one-way traffic and there will be short-term opportunities for both buyers and sellers but the overall trend is unlikely to be aggressive Sterling strength, at least for the foreseeable future.
Looking ahead and all eyes will now turn to tomorrow’s Canadian GDP figures, which are not expected to be overly positive. This could be the opportunity those clients holding GBP have been waiting for and in my opinion any spike should be taken advantage of.
If you have an upcoming GBP or CAD currency requirement and would like to discuss the current market conditions & forecasts ahead of your transfer, 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 firstname.lastname@example.org