Sterling drops against the Canadian Dollar as oil prices continue to strengthen, will this trend continue? (Joseph Wright)

GBP EUR Exchange Rate: Weekly Review July 16  

Despite some upbeat construction figures for the UK being released today, the Pound has weakened against the Canadian Dollar with the pair trading in the 1.63’s for the most part of today’s trading session.

Against almost all other major currency pairs the Pound has gained value after the better than expected construction figures (CIPS UK Construction PMI for December) gave the currency a boost in the early hours of today.

Despite the positive day for Sterling against most pairs the Loonie has bucked the trend and this can be put down to the currency’s relationship with oil. CAD is what’s known as a commodity currency and its value is often tied to the fortunes of oil as it’s one of Canada’s largest exports.

The reason behind oil’s improving fortunes can be put down to OPEC’s planned oil output cap in order to reduce oversupply of the commodity. OPEC stands for the Organisation of the Petroleum Exporting Countries and the group is often in the news due to disputes regarding oil output.

Those with a currency exchange to make should keep a close eye on oil’s value and the sentiment surrounding the commodity as it’s likely to be the biggest driver of CAD exchange rates in the upcoming weeks and months.

One of the main movers of the Pound is the upcoming supreme court decision regarding the UK governments plans to begin the Brexit process by the end of March. Feel free to get in contact if you wish to discuss this matter in further detail.

If you are planning to make a currency exchange involving the Pound and and the Canadian Dollar, it’s well 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.