GBPCAD hits fresh over 1.80 highs!

GBPCAD exchange rates have risen to over 1.81 as mounting concerns over the pace of future Canadian interest rate rises were dealt a fresh blow yesterday. In recent weeks concerns of Trump’s rhetoric on trade had seen the Loonie dollar lose ground. Yesterday Stephez Poloz, Governor of the Bank of Canada gave a speech in which he hinted at a slower pace of future interest rate rises.

The Canadian dollar has in the last year been stronger against all currencies as the BoC embarked ona  series of interest rate rises to match their biggest trading partner, the United States. This pace of hikes has slowed and in a speech yesterday, Poloz was commenting on the lack of young people in employment which has been taken as a sign of future weakness for the Loonie.

If you have a transfer buying Canadian dollars with pounds we are looking at some of the best rates we have had since the Referendum, trading levels for the pound have been rather subdued owing to Brexit which has hampered the progress on the pound. However, some limited progress on the Brexit and a belief all may not be that bad in the future has seen sterling rise slightly against its counterparts.

The big news is really coming next week on both the pound and the Canadian dollar. For the pound we have the latest Bank of England interest rate decision on Thursday plus the latest EU Summit on Brexit. Friday is the release of Inflation data and Retail Sales for Canada which could see a busy end to the week GBPCAD ranging around and above 1.80 seems to be the most likely outcome.

I would suggest the market will be better CAD buyers instead of CAD sellers, if you need to buy or sell Canadian dollars please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

Thank you for getting in touch and I look forward to hearing from you.