The Canadian dollar is continuing to make gains across most of the major currencies with a particularly strong improvement against the pound. Rates for GBP CAD have now fallen to 1.7342 creating an excellent opportunity for those clients looking to sell Canadian dollars for pounds. The Canadian dollar has been boosted on the rising price of oil which has stemmed from geopolitical concerns in the Middle East.
US President Donald Trump has pulled out of the Iran nuclear deal which is creating uncertainty in the Middle East as tensions have been rising which in turn has been pushing up the price of oil. Any escalations in tensions could see the price of oil rise further and in my view this is starting to look quite likely. As Canada is a major exporter of oil then this could see the Canadian dollar strengthen further.
The Canadian dollar could have further to rally if progress is made in the ongoing NAFTA negotiations which started last year. Canada has very strong trade ties to the US and there have been concerns that if no agreement is reached this could be negative for the Canadian dollar. This has put pressure on the Canadian dollar in recent months but the outlook is looking brighter on reaching an agreement which is already reflecting in a stronger Canadian dollar. This week could mark a milestone with a series of meetings which could make for headway.
Clients with a GBP CAD requirement should pay close attention to a Brexit cabinet meeting which could drive the pound higher or lower depending on how well the proposed customs arrangements are received by the markets. UK unemployment data and the accompanying wage growth numbers are released today and will be keenly monitored by the Bank of England.
For more information on Canadian dollar exchange rates and how to maximise on the rates of exchange when sending funds then please get in touch with me at [email protected]