GBP CAD Slips to 1.65 (James Lovick)

GBP EUR Exchange Rate: Weekly Review July 16  

The pound has slipped against the Canadian dollar over the last couple of days with levels sitting at 1.65 for GBP CAD. This has now moved a few cents lower from the recent peaks and this is most likely as a result of the OPEC agreements that have been made to cut oil production. It’s not just the OPEC members though, it’s also other external producers to include Russia which have signed up and this united front appears to be finally making some impact on the price of oil.

The Canadian dollar is very heavily impacted by fluctuations in the price of oil as Canada is a net exporter  of oil. A higher price of oil is generally good for the Canadian dollar and helps it strengthen in value. As such these recent cuts in production are already helping to start push the dollar higher.

Meanwhile the Brexit situation in the UK will become very interesting early in the New Year as we approach the invoking of Article 50, the formal process by which Theresa May will give notice that Britain will withdraw from the European Union. The Supreme Court ruling expected in January will also help direct the price of sterling.

If Theresa May does with the appeal then this would in my view result in a very sharp fall in the price of sterling as it would indicate a hard Brexit will be just around the corner. However if she were to lose the appeal then the process will be much more heavily involved with parliament which would actually help drive the price of sterling higher.

If you have an upcoming currency requirement either buying or selling Canadian dollars and 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]