GBPCAD hit 1.70 ten days ago presenting some of the best rates to buy Canadian dollars with pounds since June. This is great opportunity considering the outlook for the pound remains very uncertain, Stephen Poloz is the Governor of the Bank of Canada and whilst he has been gently weakening the Loonie lately, the currency is likely to strengthen longer term.
Overall markets are expecting the pound could come under more pressure than the Loonie dollar as we still know very little about just what Brexit will mean. For example the Theresa May government in the UK looks likely to implode any day and this is not helping the negotiations and confidence in the UK. Meanwhile Canada might have jumped the gun recently on their latest interest rate hike but their economy is performing well with their biggest trading partner the US going fro strength to strength.
The price of oil has been rising too which is a major boost for the Canadian dollar. Therefore if you are looking to buy or sell Canadian dollars understanding the latest trends and news is vital to getting the most for your money. Overall expectations of the market and future direction on the exchange rates will be determined largely by the progress of Brexit and also the price of Oil and interest rates.
The pound could see some improvements back up to the 1.70 level but there is an expectation that the pound will lose ground, if you need to buy or sell this pairing I would be making some plans in advance. For more information at no cost or obligation please speak to me Jonathan Watson by emailing [email protected].
Thank you for reading and I look forward to hearing from you.