Pound to Canadian Dollar rate rises sharply, will the Pound continue to climb? (Joseph Wright)

Canadian Dollar Suffers Seven-Week Low Following the Spread of the Coronavirus

Sterling exchange rates are continuing to climb as the year progresses, with last week being one of its strongest weeks against the commodity based currencies.

Not only has the Pound been climbing due to a combination of impressive economic data coupled with the outcome from next months general election already looking like a forgone conclusion, but the commodity currencies have been weakening due to some sharp movements from with the commodity markets.

Last week alone oil and iron ore fell by 7%, along with copper falling by 7% and gold falling by 3%. These drops took their toll on all commodity currencies with the GBP to CAD rate gaining by almost 7% in the past month.

Later this week there could be further movement between the pair as Thursday is a hectic day in the UK economic calendar. At mid-day the Bank of England’s interest rate decision will be announced followed by a speech and any  indications into future monetary policy could impact the GBP/CAD rate. At the same time the BoE’s Quarterly Inflation Report will be released and inflation is a key topic within the UK. Should inflation continue to climb at a steep rate the BoE will need to hike rates, which I expect would result in further Sterling strength.

An hour later UK GDP figures will be released, and these figures will also have the potential to create movement between the GBP/CAD pair.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on [email protected] and I will endeavour to get back to you as soon as I can.