Sterling has made gains against the CAD during the early part of the trading week, with the pair moving through 1.67 at the high.
The Pound has performed well against most of the major currencies this week but the gains made against the Loonie were more pronounced due to the steep drop in oil prices recently. Crude oil is Canada’s main export, so any slowdown in this sector generally coincides with a drop in the CAD’s value and as such the Pound could make a run on 1.70 during over the coming days.
I do feel the CAD is likely to find support around this level and with the triggering of Article 50 confirmed for next Wednesday, those clients holding Sterling may wish to take advantage of the current spike rather than gamble on further improvements during what is likely to be an extremely volatile period for the currency markets.
Regardless of personal opinion I feel the markets will be somewhat relieved when this bill is invoked, as it will remove any remaining uncertainty surrounding the issue. Yes, we still have a long road ahead but hopefully as we move beyond next Wednesday the markets will refocus and assuming there are no nasty surprises around the corner, the Pound has far more chance of a sustainable recovery against all the major currencies, including the CAD in my opinion.
However, there is still no guarantees and as such a negative reaction on the day is entirely possible and as such I would be keen to protect any short-term currency exchanges and not gamble on the current market.
If you have an upcoming GBP or CAD currency transfer to make, then we can help you navigate this turbulent market by keeping clients up to speed with all the latest developments regarding Brexit and beyond.
If you would like us to monitor the market for you ahead of a currency exchange, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on 0044 1494 787 478 and ask one of the team for Matt.
Alternatively, I can be emailed directly on [email protected].