The pound has really struggled today dragging GBPCAD down almost 3 cents as investor concerns over the economic outlook for the UK increase. The Bank of England reduced growth forecasts and withdraw previous support for an interest rate hike causing the currency to slide as largely expected. The GBPCAD rate had been moving closer to the 1.60 rate in the last few weeks but a much softer CAD had provided some short term relief for CAD buyers. If you have a transfer buying or selling CAD in the future then understanding the market and the drivers could help you secure currency at a better level.
Tomorrow there is further key economic data in the form of the latest US Non-Farm Payroll data which could easily see some big changes in market sentiment. There could also be some big changes domestically in Canada with the latest Unemployment and Labour statistics data from Canada. If we do see any big changes then the rates could easily shirt, previously there was a light expectation the Bank of Canada would raise interest rates further in line with their biggest trading partner the United States. However some softer news from the US and political worries have definitely made this less likely.
The CAD could easily weaken further against the pound perhaps by a couple of cents undoing much of the favourable news today for CAD sellers. If you have a transfer buying or selling the Loonie dollar then making some plans around such volatility is very sensible. For more information at no cost or obligation please speak to me Jonathan by emailing [email protected], thank you for reading and please get in touch for more information.