The Canadian dollar has been fairly resilient throughout 2016 despite a weakening in the price of Oil and the Canadian economy struggling following the Alberta Oil Sands fires. The rest of the year doesn’t look too bad for the Canadian dollar since the prospect of its largest trading partner the US raising interest rates and experiencing job growth is helping support the Canadian economy. On the face of it the CAD should be losing value with poor economic data such as unemployment being shown to be rising and growth meagre int he face of the Oil fires. This factor is however to a large degree temporary and the longer term prospects assuming the US economy stays on track are positive.
Expectations for the pound remain bleak as the market is predicting a further interest rate cut and perhaps more Quantitative Easing to support the flagging economy. The pound is likely to struggle in this environment and could drop further leading to a further improvement in the exchange rate for clients buying pounds with Canadian dollars. The expectation is for sterling to weaken further but we should start to see the pound gain some traction in the coming months once we know and learn more about the Brexit plans. This story has only really just begun which will without doubt run until probably well into 2020!
If you have a transfer to consider involving buying the Canadian dollar or pounds then please let me know and I will be happy to discuss the market and your options. Please contact me Jonathan on [email protected] to discuss further the market and your options.