In recent weeks the GBPCAD exchange rates have continued to climb proving opportunity for Canadian dollar buyers, however I expect exchange rates could get better in the weeks to come.
NAFTA negotiations began on Tuesday in Montreal and the initial reaction is that the negotiations have actually started well which is a surprise. However the underlining issue is that US President Donald Trump wants to modernise the NAFTA agreement or remove the US. Mr Trumps theory is that the manufacturing sector in the US is under performing due to the cheap labour in Mexico. Even though negotiations have gone well I expect the Canadian dollar to remain under severe pressure.
The pound has been performing well of late due to recent economic data releases. Forecasters are suggesting that the numbers are exceeding expectation due to global growth coupled with a slight change in sentiment surrounding Brexit.
Yesterday average earnings numbers exceeded expectation which is a surprise as the Bank of England predictions are for further falls. Also Angela Merkel announced yesterday at Davos that she wants the UK and EU to have a strong relationship after Brexit which explains the spike for sterling against all major currencies.
If I was holding onto Canadian dollars and needed to buy sterling, I would look to trade now and not take the risk of waiting, as I believe it is a matter of time until the UK secures a trade deal with the EU.
If you are buying or selling Canadian dollars this week, month or year and I haven’t covered your currency pair I would recommend emailing me with the currency pair (CADUSD, CADGBP, CADAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you email@example.com. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **