The pound has rallied to a 7 month high against the Canadian dollar this week creating an excellent opportunity for those clients needing to buy Canadian dollars. The trigger for the improvement in the numbers has been as result of the announcement of a snap general election in the UK for 8th June.
The markets have taken the news incredibly well and the belief is that the Conservative government will win a clear majority which should help strengthen the negotiating position with regards Brexit. Those clients looking to buy Canadian dollars would be wise to consider their options as the movement has been so great that it is inevitable there may be a tail off in the rates.
GBP CAD has hit a high of 1.7268 this morning and there may be a little more room left in this rally. The French election is now the central focus for the financial and currency markets this weekend with the first round of voting being held on Sunday. The pound in my view is likely to be heavily impacted by a Marine Le Pen win which could see sterling strengthen even further against the Canadian dollar in this scenario.
Today sees key economic data for Canada with Consumer Price Index inflation numbers released this afternoon. Any strengthening in the numbers could see the Canadian dollar strengthen. Canadian retail sales numbers are released on Wednesday next week although in these markets it is the political developments in the UK and the EU which are the main driving forces as far as GBP CAD is concerned.
If you would like further information on Canadian dollar exchange rates or any of the major currencies and to discuss how we can assist 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 firstname.lastname@example.org