The Canadian dollar has weakened this week with levels for GBP CAD breaking back over 1.69 for this pair. There is currently a good opportunity to buy Canadian dollars with pounds which may not be around for too much longer. The spike has come about after concerns over the renegotiation of the North Atlantic Free Trade Agreement (NAFTA) have come to light. There have been reports that there is a chance that one side could walk away from the agreement entirely.
Canada is also feeling the pinch after the US has imposed hefty duties on softwood lumber exports from Canada adding to Canada woes. Whilst the Canadian economy is performing well and interest rates have risen twice this year there is every chance that the Canadian dollar could find itself in some deeper water whilst Mexico, Canada and the US battle through this renegotiation.
As far as GBP CAD is concerned the pound is likely to see considerable volatility next week with the ongoing Brexit uncertainty and political instability for the UK. There is also the UK budget which will be given by Chancellor Philip Hammond next Wednesday which will no doubt generate a lot of attention and could see the pound react in this uncertain period in British politics.
The pound remains very much on a weaker footing after the Bank of England signalled that it is in no hurry to raise interest rates again any time soon. Although the central bank raised rates to 0.5% earlier this month it has signalled that there are unlikely to be any changes in the foreseeable future and it was this rhetoric which actually helped see the pound following a rate rise.
For more information on the Canadian dollar and how to maximise on the rates of exchange when transferring funds please feel free to email me James at [email protected]