The pound to Canadian dollar has changed dramatically in the last month principally as the Canadian dollar strengthens on the back of a much higher price of oil. The expectation is that the price of oil could rise even further in the coming weeks as investors strive to recalculate the overall values given new information on where this important commodity may go.
Canada’s main export is oil which is why the value of the Loonie dollar is so heavily influenced by changes in the price of this valuable commodity. Future projections are for a higher oil price and with us also learning of further information on interest rates too, there is a real possibility that we could in the future see the pound to Canadian dollar rates fall further.
Another concern we need to beware of for anyone holding pounds buying the Canadian dollar is the prospect of a NAFTA (North Atlantic Free Trade Agreement) deal being reached in the coming months. Any signs that a deal is being reached soon would see the Canadian dollar rise in value so clients looking to buy Canadian dollars with pounds should be treading very carefully hoping that the pound will rise.
GBPCAD levels have also slipped because it is looking less likely the Bank of England will raise interest rates since economic data this week has raised some fresh concerns about how much of a good idea that is. If you are looking to buy Canadian dollars in the future with pounds then making some plans in advance is worthwhile to try and mitigate the uncertainty.
GBPCAD could now struggle to get back above 1.80 if you are looking to buy or sell Canadian dollars making some plans sooner than later is probably the best bet. For more information at no cost or obligation please speak to me Jonathan Watson by emailing [email protected].