GBPCAD takes a tumble (Dayle Littlejohn)

GBP EUR Exchange Rate: Week in Review October 9th

This week oil prices have continued to rise and have reached their highest levels since the beginning of February, and a barrall is now above $55.  The Organisation of Petroleum Exporting Countries (OPEC) managed to get all of the countries to cut oil production in a bid to improve the price of oil and that is the reason why we have seen the rise.

However it’s not all positive news for OPEC as it was only two weeks ago when  Iraqi Prime Minister Haider Al-Abadi stated Iraq needs oil prices to rise above $60 in order to lower their trade deficit. However it is key to note Iraq were one of the countries to miss the oil production cut target in January.

For people needing to purchase or sell Canadian dollars it is key to note that the Canadian economy is heavily reliant on oil as an export and the price of oil has a direct impact on currency exchange rates. 

As for GBPCAD exchange rates fell off the news that the price had risen. Furthermore sterling taking a tumble due to Brexit is also a reason why GBPCAD has dropped to 1.64. Theresa May’s Brexit deadline now looks very possible and therefore I expect GBPCAD to continue to fall in the months ahead as long as OPEC manage to keep it together.

In other news the Bank of Canada kept interest rates on hold at 0.5% yesterday, and the data release didn’t seem to have much impact on the Canadian dollar.

If you are buying or selling Canadian dollars this week, month or year and I haven’t covered your currency pair I would recommend emailing me with the currency pair (CADUSD, CADGBP, CADAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you [email protected]. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **