I wrote earlier this week about GBPCAD breaking 1.70 and so it has passed. The pound remains under pressure and the Canadian economy will continue to be supported by their main trading partner the US. The Loonie and the Canadian economy have had a rough period with the economy there flagging under the pressure of the Alberta Oil Sands fires plus the knock on impact of this event on their economy. Expectations for the future are that the price of Oil could weaken further and there is even talk of the Canadian economy slipping into recession. However as long as the US economy is performing well and their demand for raw materials keeps up I would suggest the Canadian currency will remain reasonably well supported particularly against the struggling pound.
Expectations for sterling seem to be more and more focused to the downside, further deterioration’s in the value of the pound will continue to weigh on the currency and this will make life difficult for Canadian dollar buyers with pounds. The likelihood of further falls is high and therefore if you have a requirement to buy Canadian dollars I would suggest moving sooner rather than later to try to mitigate against the expected falls. All in all markets are unpredictable but it seems that for the rest of August the likelihood is the GBPCAD rate is likely to remain in the 1.60’s. Longer term the pound may rise but I would suggest rates between 1.63 and 1.74 for the rest of Q3. If you have any transfers to consider please let me know by emailing [email protected] or calling 01494 787 478. I can help with the planning and execution of any transfers you might need.