The Pound is on the rebound against the Canadian Dollar, which is quite a surprise when we consider that within the past few weeks it hit a new low of 1.55, during the flash crash just a couple weeks ago now.
The feeling towards the Pound, and the UK economy in general has turned for the better as the language surrounding ‘Brexit’ has softened somewhat. The situation was very much the opposite towards the beginning of last week and over that weekend, as European Leaders Donald Tusk and Francois Hollande (French PM) were talking along the lines of a ‘Hard Brexit or No Brexit’ and the Pound was the biggest loser in the equation.
Sentiment towards Sterling is crucial in the current climate as it appears to be the main driver for GBP exchange rates, so those hoping for further sterling strength should keep a close eye on what’s being said about the UK’s planned EU departure, which will start in March of 2017.
The next time the Brexit could find itself in the headlines will be tomorrow, as around 3.30pm the governor of the Bank of England, Mark Carney will be giving a speech. Expect any major Brexit announcements to have the potential to swing exchange rates so those planning a currency exchange between the GBP and CAD pair should keep a close eye on this speech.
The Loonie has taken a slight knock itself in terms of sentiment as Canada and the EU have failed to agree on a trade agreement at the 11th hour. This coupled with the Bank of Canada’s suggesting that further need for monetary easing could be in the cards for the first time in 3 months could cap any potential upsides for the Loonie.
If you are planning a currency exchange involving the Pound and the Canadian Dollar, it’s worth your time getting in contact with me on [email protected] 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.