GBPCAD drops even further! Will we break 1.60?

Brexit and Coronavirus Weigh on GBP as Oil Price Collapse Causes CAD Value to Fall

Overnight the CAD dollar has strengthened against the pound as investors concerns over the likelihood of further US interest rate rises increase. The expectation of further hikes in 2017 is fading and this has seen the US dollar lose ground across the board. One beneficiary of this has been the Canadian dollar which has strengthened against the pound moving to lows last seen in July, but to get lower you would have to go to last year. This is presenting an excellent opportunity to any client selling Canadian dollars for pounds, for every 100,000 CAD sold compared to the worst rates this year, you would now be getting an extra £5000!

If looking to move on a purchase or sale of the Canadian dollar for pounds then getting the best rate and timing is crucial to maximising the transaction. Overall expectations for the pound remain fairly subdued and a move lower to 1.60 could not be ruled out. However ongoing concerns in Canada including the outcome of any trade renegotiation with Trump could all put pressure on the Canadian economy.

I believe a move towards 1.60 is likely but do not think we will actually break through it. Clients looking to buy Canadian dollars might benefit from sitting out the current move and holding fire for future improvements although depending on how long you have to wait this could prove a costly exercise.

We offer a specialist service to help with the planning and timing of any currency exchanges that you will need to make in the future. A small difference in the exchange rate can lead to a big difference in the amount of currency that you receive and getting the timing right is crucial to getting the most for your money.

If you would like more information on where the currency pairing is headed and to discuss strategy specific to your situation, please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.