GBPCAD rates have improved to some of the best levels since the Referendum as the pound is looking more confident going into the Brexit negotiations. Overall expectations for the pound are much improved as investors eye a softer Brexit which should retain access to the Single Market or the Customs Union. Whilst the Canadian dollar may well strengthen owing to some fundamental reasons which drive its performance, sterling looks to have the upper hand for now.
Oil prices and the prospect of further interest rate hikes in Canada are all events that could see the Loonie dollar stronger in 2018, but with Donald Trump talking markets up and down, the US dollar, a key factor in CAD performance, is much weaker. The US economy is performing well and this will also underpin the performance of the Canadian dollar.
OF course, it is never possible to say exactly what will happen in the future on exchange rates but with the pound being buoyed by the progress on Brexit and uncertainty over the future strength of the Canadian dollar, there is plenty of scope for the rates to improve further for CAD buyers.
If you have a transfer buying or selling the Canadian dollar there is key information on the Canadian and UK economy soon which will give rise to further developments on the currency pair. Tomorrow is Canadian GDP (Gross Domestic Product) data which will give us some insight into the performance of the Canadian economy.
A small improvement is expected in the GDP but with the figures resting very close to 0% growth, a slight negative news might raise questions about the economic decisions taken by the Bank of Canada to hike rates, plus put pressure on the Loonie dollar.
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