GBP/CAD rates have fallen over the past week, with the CAD gaining over three cents at the high. The pair were trading North of 1.70 but following Sterling’s decline trades today have been going through around 1.67 on the exchange.
The CAD has benefited from the steady rise in oil prices of late, which has helped to drive its value up. Due to the Canadian economies heavy reliance on the export of their crude oil, the markets will always react to the fluctuation in oils value and this will have a huge bearing on how well the CAD performs against the other major currencies.
Another reason we have seen the CAD bounce back is the on-going uncertainty surrounding the UK’s upcoming Brexit from the EU. The recent decision by the high court that the vote needs to be ratified through Parliament has only enhanced the feeling of uncertainty amongst investors and this was always going to benefit those clients holding CAD.
Despite this positive move I would be very keen to take advantage of the recent improvement as UK Retail Sales released this morning came out well above market expectation and helped the Pound find support around the current levels, so CAD sellers may find their window of opportunity is marginalised due to this morning’s positive figures.
Looking ahead and we have a host of inflation data out tomorrow for Canada and with a small increase expected on the previous reading, expect additional movement GBP/CAD rates should it come outside of this remit.
If you have a 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]