If you are looking to purchase pounds with Canadian dollars, we are are close to some of the best rates in the last few weeks for such a transaction. There is an overall belief that the market will continue to favour clients looking to buy the pound because the pound will get weaker. This is without doubt a possibility but with sterling having dropped so much in the last week then I do feel hoping we will see dramatic improvements is a risky strategy. Clients buying Canadian dollars could be offered some respite with a whole host of Canadian economic data released next week.
The pound is of course lower because of the UK election result but the expectation for the pound could now be a gentle move higher or at least a reduction in further losses, as markets bet we are more likely to see a ‘softer’ Brexit. This implies access to the single market and also free movement of people is retained, meaning the pound and the UK avoids the cliff edge that a ‘hard Brexit’ would entail.
Of course GBPCAD is also driven by the Canadian dollar and the main driver here is the price of Oil. With the OPEC (Organisation of Petroleum Exporting Countries) agreement hitting snags from the fact global supply remains at buoyant levels the Loonie is weaker overall. The belief that the agreement is unlikely to trigger the rises longer term on the price of Oil means we might not see the strength on the Canadian dollar we had hoped.
This means the pound and the Canadian dollar will continue to be at loggerheads. If you need to sell CAD for sterling I would be suggesting current levels are very much worth taking advantage of or strongly considering. If you have a transfer to make we can offer assistance with the timing and planning of any deals to help minimise your exposure to the market.
For more information at no cost or obligation please speak to me Jonathan Watson by emailing [email protected]. Thank you for reading and I look forward to hearing from you.