The CAD has found some support against Sterling this week, with the Pound coming under pressure again a host of the major currencies.
The CAD had been struggling since the turn of the year, despite positing some positive economic figures.
Much of the issues lay with concerns over the North American Free Trade Agreement (NAFTA), with US President Donald Trump extremely vocal about his dissatisfaction with the current terms, feeling they do not benefit the US as they should.
Whilst talks are on-going, he has already threatened to pull out of the agreement, which if it were to happen would be extremely detrimental to the Canadian economy.
Whilst Canada’s global export of crude oil helps support their economy, their primary importers are the US. Therefore any shift in this trade relationship will no doubt have an impact, which is currently being factored into the CAD’s value, at least to some extent by investors.
Whilst Trump may struggle to convince Congress to pass any decision to leave NAFTA, the current uncertainty is weighing heavily on investors and as such the CAD was struggling to make an impact against the major currencies, including the Pound.
Fast forward and whilst there are still some concerns, President Trumps stance seems to have softened slightly and there is an agreement from both sides that the terms of NAFTA need to be revised. This has boosted investor confidence in the Canadian economy, which has helped support the CAD’s value.
The Pound on the other hand is under pressure, as Brexit negotiations look set to intensify again. A run of poor UK data in the form of Services & Manufacturing figures has not helped support any further rises for Sterling and it may be time to look at protecting any Sterling positions.
Any clients with a GBP/CAD currency requirement this week will be taking note of today’s Bank of England (BoE) interest rate decision and monetary policy statement. It is very unlikely that we will see a shift in stance by the central bank, with BoE governor Mark Carney likely to remain cautious in his approach
If you have an upcoming GBP or CAD currency transfers to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.