GBP/CAD rates have levelled out over the past week following some heavy losses earlier this month.
GBP/CAD rates dropped by almost 10 cents, following UK Prime Minister Theresa May’s comments regarding the triggering of Article 50 early next year. Whilst we knew this was coming the timeline was shrouded in uncertainty and the confirmation rocked the markets and sapped investor confidence, which in turn caused the Pound to lose value.
We did see a mini recovery for Sterling earlier in the week, which was halted following Bank of England (BoE) governor Mark Carney’s speech earlier this week, which despite mentioning a prospective interest rate hike due to policy changes, remained fairly dovish.
The BoE have come to logger heads with the government over the current economic conditions inside the UK and the best way to move forward, with Carney remaining fairly negative due to the Breixt decision and the subsequent consequences this would have on our economy. As such he stated he may not continue on his current position beyond the end of his current contract, once again adding to the uncertainty surrounding the UK at present.
GBP/CAD rates continue to trade around 1.63 on the exchange and I do not see a sustainable recovery for Sterling in the short to medium-term, or whilst current market conditions remain as they do.
If you have an upcoming GBP or CAD currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, or limiting your losses with one of our forward contracts, rather than gamble on what has become an increasingly volatile and unpredictable market.
If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, 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 [email protected]