The pound has made a good recovery against the buoyant Canadian dollar in the last week. GBP CAD exchange rates are now over 1.66 which is almost 8 cents higher than two weeks ago.
Clients looking to buy Canadian dollars are currently seeing a good buy opportunity which would be worth considering before tomorrow’s key speech from UK Prime Minister Theresa May.
Any “intervention” that seeks to bring Britain in line with the EU demands of paying an exit fee could see further gains for GBP CAD. My opinion is that she will seek to make friends rather than enemies and this could have positive impact on the price of sterling. Much of this news should be priced into the market but as we saw at the Mansion House speech earlier this year there was considerable market volatility immediately after that speech with major gains of almost 2% for the pound.
Clients with a pending requirement to either buy or sell Canadian dollars for pounds would be wise to get in touch to see how these events are likely to impact on how much currency you receive. There could be some excellent opportunities in the coming days for buyers and sellers alike.
The Canadian dollar meanwhile does remain a very strong currency having made gains of 13% against the US dollar in the last 6 months. The recent intervention by the Bank of Canada to raise interest rates both in July and September has helped strengthen the Canadian dollar considerably. The outlook for Canada also remains strong so there is a real chance that the central bank may seek to raise interest rates again in the coming months which could see the pound rally further.
If you would like further information on sterling exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]