The pound to Canadian dollar rate has risen to 1.70 as investors gently stepped back from a slightly less hawkish BoC (Bank of Canada) yesterday. With no further hike as expected and a less strong commentary around the pursuit of further hikes the Loonie slipped in afternoon trading. This process had already been given a kick start earlier in the day by the ONS (Office of National Statistics) releasing data showing the UK economy growing at 0.4% giving the pound a much needed boost. GBPCAD has hit 1.70 but can it remain at this level?
Today is some very key news on the GBPCAD rate as we get the latest ECB (European Central Bank) meeting and interest rate decision. Overall expectations are for the pound to continue to perform well against the Loonie in the short term as investors believe the BoE (Bank of England) will raise interest rates next week. The ECB decision could see GBPCAD movement as it has a direct influence on global market sentiments which could see investors adjusting their positioning and holding of more risky and less risky assets. Should the Euro perform well the CAD may soften, the reverse may also be true.
If you are buying or selling the Loonie against the pound or Euro the next week is critical to movements as we get some important news. To be notified of sudden changes in the rate or assistance in purchasing at more favourable level, please speak to me Jonathan by emailing [email protected].
Whilst on the face of it the BoE meeting next week could be sterling positive I would not be banking on it. Any hike will surely be accompanied by some cautious commentary that could easily send sterling lower. If you have a transfer involving the pound or Canadian dollar this is a critical time on the rates. For more information on our service and how we can help make the most of your currency exchange please contact me Jonathan Watson by emailing [email protected].
Thank you for reading and I look forward to hearing from you.