GBP CAD exchange rates could be in for a volatile ride with British politics and Brexit developments causing a storm. Position papers from the British government are expected later today and there are already murmurs of a transitional agreement with the EU which could potentially be seen as positive for the pound.
It is worth remembering that the pound has remained subdued largely as a result of Brexit so any developments are likely to be sensitive. Expect considerable volatility this week as developments unfold. Clients looking to buy Canadian dollars could see some better opportunities around the corner and it may be worth holding out for the detail. Anyone with a pending requirement would be wise to get in touch at this stage in readiness to secure a better rate.
The price of oil has also been fluctuating in response to the crisis in North Korea and the Canadian dollar has reacted accordingly. Canada being a major net exporter of oil is directly impacted by political events. A fall in the price of oil is generally seen as negative for the Canadian dollar and this is why the Loonie has seen a little bit of weakness.
Looking forward there could be an interesting end to the week with the release of Canadian inflation numbers which the Bank of Canada will be keeping a close eye on. The Bank of Canada raised interest rates in July and there is talk of further hikes to come. This rhetoric should only help the Canadian dollar going forward and a high inflation number this week could help support the dollar.
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