The pound to Canadian dollar has really risen in the last week as we learn of the UK’s General Election being called which is expected to fuel a sterling surge as Theresa May and the Conservative party strengthen their hand. The Canadian dollar is also a little weaker as the US dollar softens and markets remain sceptical about the outcome of the French election. Overall expectations are shifting as to what might be a realistic outcome and performance in such economic conditions, as a commodity currency the Loonie will weaken in times of more global uncertainty as investors adjust their holdings for what appear to be a more stable outlook.
The expectation for the rates is that we could easily see some improvements but the pound will also struggle again in the future owing to the uncertainty of the Brexit. Many clients buying Canadian dollars will struggle in the future to get these kind of levels if the pound does deteriorate much further. If you need to buy Canadian dollars in the future making plans in advance seems to me the very best bet moving forwards.
GBPCAD has been in the 1.60’s for most of 2017 but with trades now above 1.70 I think this is the right time to be considering a CAD purchase. This week there is a whole host of economic data due which will take some of our attention with lots of political events in the background easily likely to disrupt previous market expectations.
If you have a transfer to consider making some plans in advance is a smart move to try and avoid the uncertainty of yet further slips and slides on the rates. For more information at no cost or obligation please speak to me Jonathan Watson by emailing [email protected] outlining your situation and how we might help.