Will GBPCAD reach 1.70?

Oil Prices and Brexit Casuing Volatility for Pound to Canadian Dollar Exchange Rates

The pound has risen to fantastic fresh highs against the Canadian dollar which is an excellent opportunity for any clients looking to buy Canadian dollars with pounds. If you are looking to make any kind of currency transfer in the future buying Canadian dollars these levels may not last for too long and making the most of them could be very worthwhile. Expectations on the rates for the future are mixed but overall I would expect the pound to lose further ground against most currencies in October as it becomes apparent the UK will not raise interest rates.

The Canadian dollar is looking at a number of challenges to its strength in the coming weeks such as a lower price of Oil although there are actually a number of strong reasons to suspect the pound would lose value against a stronger Canadian dollar or the Loonie as it it termed. For example I would highlight the prospect of further interest rate hikes for the US and Canada. Both elements have seen the Loonie much stronger in recent weeks and this trend is highly likely to continue.

The pound could definitely lose value against the Canadian dollar which is likely to remain very strong for the reasons above. Interest rate expectations are a huge driver on the currency markets and this will be key for the GBPCAD pairing in the future. If you have a transfer to make buying or selling Canadian dollars in the future then it is well worth speaking to us to ensure you have all the latest information about the market and the rates.

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.