The Pound is trading at almost a 3 year low against the Canadian Dollar, as you would have to go back as far as October of 2013 to see the pair trading below 1.7000.
The UK’s ‘Brexit’ has been behind most of the recent substantial drop as currency markets were hoping for a vote to remain within the EU, but after recovering somewhat after the Pounds initial steep drop in the aftermath of the Brexit vote, the downward trend has returned once again.
Not only is Sterling under pressure across the board as economic data being released from the UK has been disappointing in it’s post-brexit environment, but when compared with the Canadian Dollar the Pound is struggling as CAD goes from strength to strength as oil gains value.
The Canadian Dollar is highly correlated to the oil price as oil is one of the country’s largest exports, so movement in the value of oil can have a knock-on effect on the Loonie. Over the past few days oil has risen from $41 to $46 and this move has spilled over into CAD exchange rates.
Moving forward I expect the Pound to continue to come under pressure, as data disappoints and there is potential for further interest rate cuts to alleviate the pressure on the UK’s economy.
If you would like to discuss an upcoming currency exchange you need to make between GBP and CAD, it’s well be worth your time getting in contact with me on email@example.com 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.