The Canadian dollar remains at very strong levels against the pound touching some of the best rates we have had since August 2013. At the moment we cannot be specific about the Brexit plans and this is weighing heavily on the pound and I think it will continue to do so. Most clients looking to buy or sell in the future are completely at the mercy of the currency markets and what comes up next. It is quite simply impossible to cover every angle on the currency markets. The best and safest strategy in such an uncertain market is I believe to adopt a more defensive strategy.
The pound is currently looking more like a risky currency because of the huge uncertainty over the Brexit. If you are looking to buy or sell the Canadian dollar with sterling it appears the Canadian dollar will remain strong and the pound weak. Most analysts expect the CAD will continue to strengthen as the US economy goes from strength to strength. As the Canadian’s largest trading partner the United State’s economic performance will help to trigger economic activity in Canada. Analysts expect the price of Oil to remain supported which will also help the Canadian dollar to remain firm since Canada exports lots of Oil and when the price of Oil rises the Canadian dollar rises too.
Expectations on GBPCAD which is already at close to 3 1/2 year lows remain more of the same. The UK’s Supreme Court case which is due any day is the biggest news immediately on the markets and we expect GBPCAD could touch up to 1.64 if the previous decision is upheld, 1.55 is the previous decision is overturned. The ‘good news’ for sterling is very much priced in to the current rates.
For more information and further assistance with the timing and planning of any deals please feel free to speak to me Jonathan by emailing [email protected]. I hope this information has been useful and I very much look forward to hearing from you and assisting in the future.
Thank you for reading.