GBP/CAD – Potential Market Movers (Daniel Johnson)

GBP EUR Exchange Rate: Weekly Review July 16  

Could Boris Johnson provide some clarity on Brexit?

Tomorrow we will see Boris Johnson discuss Brexit. This does have the potential to move markets if he provides any clarity on Brexit. I would however be sceptical about him causing a significant rise in Sterling value. The real issues that need to be addressed seem to be being avoided. In order for large games for the pound we need clarification on immigration and trade. Theresa May has already indicated the two year target for exit from the EU is unrealistic. Sir Ivan Rogers one of the key negotiators resigned before negotiations had even started, stating unrealistic expectations as a reason for his resignation. He thinks a full exit could take as long as a decade.

Two Consecutive rate hikes from the BOC

The Canadian economy is in a very strong position compared to that of the UK economy. There recent spike in Sterling favour was caused by Mark Carney, the governor of the Bank of England hinting at the chance of a rate hike in the UK. Whereas the Bank of Canada has actually hiked rates twice consecutively. I think there is potential for further Sterling weakness. If you have a Canadian Dollar requirement, it may be wise to take advantage of current levels if you have to move short to medium term.

Keep an eye on unemployment data from Canada on Friday. This does have the power to influence rates if the data comes in away from expectations.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving.  I can be contacted at [email protected] . (Daniel Johnson) Thank you for reading.