Will GBPCAD hold above 1.70?

GBP EUR Exchange Rate: Weekly Review July 16  

The pound to Canadian dollar levels have on the interbank rate improved back over 1.70 as concerns over the NAFTA (North American Free Trade Agreement) surfaced creating uncertainty over the outlook for the Canadian economy. The Canadian economy is very much supported by its exports in key commodities like oil and lumber which the US is a major purchaser of.

Should NAFTA be rejected by Trump then the Canadian would struggle, this could present better rates in the future. If you have a transfer buying Canadian dollars then making the most of this uncertainty could be a wise move as the pound is not guaranteed to keep its head above water with so much uncertainty over the Brexit.

The pound to Canadian dollar has been trading in a range on the interbank rate range from 1.59 to 1.77 so currently, the levels in the 1.70’s are not bad at all. The expectation for the pound to keep on climbing is not without risk, key elements of Brexit are still to be finalised and this could see the pound lower.

The pound has risen against the Canadian dollar as NAFTA concerns and optimism over Brexit support the rates, this could quickly change course however. Tomorrow is the all-important Bank of Canada interest rate decision and this could see volatility on the currency pairing, with the US in a process of raising interest rates there is some pressure on the Canadians to follow suit to keep up the pace. The price of oil is also important in all of this, most analysts predict the price of oil could rise in 2018, this would support a stronger Loonie dollar.

If you need to buy or sell Canadian dollars against the pound understanding the latest trends and themes is central to achieving the best rates of exchange. For more information at no cost or obligation please contact me Jonathan Watson by emailing [email protected]

Thank you for reading and I look forward to hearing from you.