GBP CAD exchange rates have seen an excellent day with gains of around 1% for this pair with levels hitting a high today of 1.6686 creating some better opportunites for those clients looking ot buy Canadian dollars.
British politics continue to be the main driver for GBP CAD and the planned dinner this evening between UK Prime Minister Theresa May and Jean Claude Juncker should create new direction for sterling exchange rates across the board. We will probably need to wait until tomorrow for the reaction but any positive noises and a suggestion that Brexit trade talks can now open should be seen as welcome and very positive news for the pound. However if talks are perceived as going badly then this is likely to see the pound come under pressure again with a move lower below 1.65 again.
Whilst talks are continuing between Britain and the EU so too are they happening between Canada, the US and Mexico. The North American Free Trade Agreement (NAFTA) is being discussed and the Canadian dollar could find itself coming under additional pressure. With protectionism creeping in from the US then any changes to the agreement could see a less favourable deal for the Canadians.
Tomorrow sees UK inflation figures which will be keenly viewed by the Bank of England. A strong figure tomorrow morning will only help cement those expectations that the central bank will look to raise interest rates in the coming months and possibly as soon as November. Consumer Price Index inflation numbers for Canada are released this Friday and could make for an interesting end to the week. A strong number here will only be another reason for the bank of Canada to raise interest rates again considering we have already seen two rate hikes this year.
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 firstname.lastname@example.org