The Canadian dollar has been a little weaker against the pound which itself has been stronger. GBPCAD is looking a much more attractive for Canadian dollar buyers in the weeks as some of the uncertainty over the Brexit fades for now. Another benefit for Canadian dollars buyers with pounds is that the US dollar is weaker too as the ‘Trump trade’ loses momentum. Most analysts expect sterling to now perform better and whilstI would not rule out some short term improvements I would also be very alert to the pound sliding as well.
The rest of this week sees limited data before some key releases on Friday. Tomorrow is the latest Service data for the UK which is believed to reflect another slowdown in this vital area of the UK economy. The big news for the GBPCAD rate will be Friday when we see the latest Unemployment data released alongside Unemployment data from the United States too.
Friday also carries the latest UK GDP (Gross Domestic Product) release which will be of real interest for clients holding the pound. Expectations are for the UK economy to have grown 0.6% in the last 3 months so any deviation will carry weight. Markets are very keenly watching and waiting to see just what happens to the UK economy now it has voted to leave the EU.
In the end, a continuation of the more recent trend of improved sterling strength and increased uncertainty over the US economy will probably I feel see the GBPCAD rate higher but ultimately any moves higher will not be sustained. If you have any currency transfers making some plans sooner rather than later is sensible to try and reduce your exposure to the market. For more information on the best strategies and information to help you with your currency transfer please speak to me Jonathan by emailing [email protected].