The Pound has remained in a very tight range against the Canadian Dollar during today’s trading session as there has been very little economic data due out today.
The Canadian Dollar improved on Friday as Canada released some very strong retail sales data and this helped the CAD strengthen to close to its best levels to buy Sterling in 2 months.
Canadian inflation data also came out better than expected and this has provided evidence to support the recent interest rate hike to 1.5% by the Bank of Canada.
Indeed, further strong economic data could see GBPCAD exchange rates drop towards 1.70.
The Pound has been under a lot of pressure politically at the moment owing to the uncertainty caused by the Brexit talks in recent weeks.
We have seen the resignations of both David Davis and Boris Johnson recently and Theresa May has only just been able to get the recent Customs & Trade Bill through.
Meanwhile, new Brexit Secretary Dominic Raab has suggested that a deal with the European Union could be reached by October but the UK is also preparing for the possibility of a no deal.
Raab is due to go back to Brussels on Thursday and he is hopeful that he could try and get ‘the best deal’.
However, as we have already seen over the last few months, not a lot appears to have happened so don’t expect a miraculous change in the situation over the next few days.
The main aim is to get something agreed by October in order for the government to be able to ratify the deal by March 2019 when the UK is due to leave the European Union.
According to Raab 80% of the withdrawal agreement has already been sorted but it will be the last 20% that could cause further problems and this is why I think we could see GBPCAD rates move towards 1.70 in the near future.
Therefore, if you’re thinking about buying Canadian Dollars it may be worth getting things organised in the near future.
If you would like to save money when buying Canadian Dollars then contact me directly for further information and a free quote. You can get in touch on 01494 725 353 or by emailing me using email@example.com.