So far this week the pound has gone from strength to strength against the Canadian dollar as the UK and EU came to an agreement in regards to the transitional period. Since the start of trading on Monday GBPCAD has risen
The key points from the transition was that the transition itself will last 21 months, and Theresa May gave into EU demands as she announced she will give full rights to EU citizens that arrive in Britain if they arrive within the transition. In addition the UK government also backed down in regards to taking back control of its fishing waters, which has angered Scottish officials.
In regards to exchange rates I am not surprised to see the pound make gains as the UK now has 21 months to unwind from the EU and the UK Prime Minister appears to be trying to negotiate a ‘soft’ Brexit. Nevertheless trade talks will now start early April and will be the most challenging talks that the UK and EU have to have.
For clients that are buying CAD short term, I would recommend taking advantage of the spike as I don’t foresee the pound gaining much more value, but some negative news could push GBPCAD back below 1.80.
In other news the UK are set to release their latest interest rate on Thursday and the EU summit on Thursday and Friday should provide further clarity in regards to the transition and Brexit. Clients should expect further volatility towards the end of the week.
The currency company I work for enables me to buy and sell Canadian Dollars at rates better than other brokerages and high street banks. If you are buying or selling euros this year feel free to send me the currency pair you are trading (CADUSD, CADEUR, CADGBP) the reason for your trade (company invoice, buying a property) and I will email you with my forecast for the currency pair email@example.com. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn