Sterling exchange rates have seen very mixed signals against the Canadian dollar in the last week. On the one hand the more positive outlook for Britain with regards Brexit has helped see the pound strengthen in value.
On the other hand the OPEC meeting last week has created extra volatility for the commodity currencies which includes the Canadian dollar. The Loonie (Canadian dollar) is susceptible to changes in the price of oil as Canada is a net exporter of oil. A higher oil price is generally good for the Canadian dollar so any price rise usually sees the dollar strengthen.
An agreement has been made to cut production by all members of OPEC including Russia which is external to the organisation. As such there was a strengthening in the dollar immediately after that agreement was made but as always question marks remain as the viability of this production cut. For this reason we are seeing very mixed market movements for this currency pair with both Brexit developments and OPEC uncertainty.
UK Gross Domestic Product figures are released today which are likely to be scrutinised and will give some better indications as to where the UK economy is heading. A strong figure today would almost certainly be good news for the British economy and could see the pound rally across the board.
Clients who are holding sterling are seeing a very volatile period at the moment which is unlikely to change any time soon although sterling still appears to be on the up. If you would like to be kept up to date with all the latest market movements, 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 James. Alternatively, I can be emailed directly on [email protected]