GBP CAD exchange rates have seen a volatile week largely as a result of the ongoing Brexit developments which have had a direct and substantial impact on the price of sterling. The pound has made gains against the Canadian dollar after it was reported late yesterday that the European Union would now start discussions about a future trade agreement between Britain and the EU but without Britain. The news was received extremely well with sterling making gains across the board. GBP CAD now sits at 1.6613 up from a low of 1.6496. Any positive noises from the EU could see the pound rally further against the Canadian dollar.
The Bank of Canada releases is Business Outlook Survey next week which could give some direction for the Canadian dollar. The central bank has raised interest rates twice this year in July and September and any further clues from economic data that highlight a buoyant economy could see further gains for the dollar.
The price of oil is also a factor for the Canadian dollar and the recent cut in production by Saudi Arabia is helping to lift the price of oil higher. The Canadian dollar benefits from a rising oil price considering that Canada is a net exporter of oil.
Next Friday could make for an interesting end to the week with Canadian retail sales and Consumer Price Index inflation data. A strong retail sector and higher inflation figure are likely to boost the dollar on expectation the Bank of Canada will look to raise interest rates again. Those clients looking to buy Canadian dollars with sterling would be wise to get in contact and look at the options available to you.
If you would like further information on Canadian dollar 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]