The pound to Canadian dollar is still looking very attractive from a viewpoint of previous positioning since the EU Referendum. Canadian dollar buyers with their pounds are enjoying some of the best rates since prior to the vote, a brief rally last week to 1.7658 almost touching the post Referendum high of 1.7776 May 2017. Will this gentle trend higher continue or will GBPCAD soon get pushed back into the 1.60’s?
Of vital importance will be future economic data from Canada which might give rise to increased expectations the Bank of Canada will raise interest rates. Recent Unemployment data showed rising Unemployment from 5.7% to 5.9%. This coupled with a stronger pound has seen the GBPCAD rate spike and could be of concern for any clients looking to sell CAD for the pound.
Potential opportunities for Loonie sellers (and concerns for Loonie buyers with pounds) would come in the form of developments on Brexit as we get closer to understanding exactly what Brexit means. A series of speeches on Brexit will be the hot topic this week and next, tomorrow Boris Johnson will be giving a key speech on Brexit which will surely have the potential to be a market mover for the pound.
It is no secret Boris Johnson harbours certain ambitions in government, could he be using this as an opportunity to raise his profile? The expectation is that nothing is ever clear with Boris Johnson and the market will surely be looking for any clues that may lead to political instability for the UK and therefore the pound.
If you wish to undertake a large volume currency transfer buying or selling Canadian dollars with pounds then we can help to maximise the position through a better exchange rate and some proactive assistance with the timing of any deal too. For more information at no cost or obligation please speak to me Jonathan Watson by emailing [email protected].
Thank you for reading and I look forward to hearing from you.