The Canadian dollar has weakened which is presenting some of the best rates to buy the Loonie dollar with pounds since before the Referendum vote back in 2016. Sterling has risen on the back of increased positive sentiments relating to the Brexit which has seen the pound boosted against all currencies across the board.
There have been some very important meetings on Brexit taking place between the Government in the UK where a position on Brexit has been formulated and might well be outlined to the markets very soon. Expectations are that the direction that will be taken is more of a softer Brexit which is more supportive for the pound since it means there will be less disruption to the current arrangements that we have in place.
The Canadian dollar is also weaker as a series of data releases this week have pointed to a slightly less buoyant economy in Canada. Yesterday Retail Sales data disappointed and Inflation data this afternoon was shown to have slipped on the month which means there is less opportunity and reason for the Bank of Canada (BoC) to hike their base rate.
Many commentators are predicting the US could soon come to the end of their current interest rate hike cycle, this could see the end of the current path to hiking which has seen the Loonie so well supported in recent weeks. Brexit progress will surely support sterling so the current trajectory on GBPCAD does seem to be upward, we could move closer to 1.80.
This is great news for Canadian dollar buyers, for clients looking to buy Canadian dollars with pounds we are getting closer to the magic 1.80. If you are looking to make any transfers buying or selling Canadian dollars then please don’t hesitate to speak to me to get the latest news and rates.
Thank you for reading and please contact me on [email protected] to learn more about the rates and where GBPCAD could head next.