The pound has gradually climbed higher against the Canadian dollar with rates close to the recent highs seen in November of this year. GBP CAD is having a better run after positive developments in the Brexit negotiations. GBP CAD is now trading at 1.7180 but is struggling to find the momentum for the next push to 1.75 for this pair.
Clients looking to sell Canadian dollars for pounds could see a material shift in the exchange rates after the EU summit in Brussels is concluded tomorrow. A positive announcement that sees the door officially open to future trade talks could see the pound rally against the Canadian dollar presenting clients with some better opportunities to purchase.
A move back towards 1.75 in my view is a likely scenario if all goes well tomorrow.
As far as sterling exchange rates go the ongoing Brexit negotiation is the single biggest driver for the pound so it should not be underestimated for the GBP CAD pair and also other currency pairs.
The Canadian dollar however has been boosted after the US fed raised interest rates last night. The US Fed raised rates last night taking the headline figure to 1.5% which is helping strengthen the US dollar. The US Fed have stuck with their forecast that rates should climb another three times throughout 2018 with a long term target to reach of 2.5%. Of course the Bank of Canada have also raised interest rates twice this year effectively keeping up with the US. Going forward the likelihood is that the Bank of Canada will also raise rates at some point in 2018 and this should help support the Canadian dollar going forward.
For more information on Canadian dollar exchange rates and how these events have a direct impact on your specific requirement then please get in touch with me at [email protected]