The Pound to Canadian Dollar exchange rate has been at some of the better rates to sell Canadian Dollars in 2018 as the market perceives a weaker Pound and a stronger Loonie Dollar. With a number of factors to push the Canadian currency higher, the GBPCAD exchange rate could easily end up in the higher 1.60’s by the close of the week.
The Canadian Dollar has risen as the market anticipates further economic improvements and the possibility of higher interest rates as the Canadian economy benefits from a range of different factors. Most topically this week, the US economy has seen improvements with a stronger GDP number, the best in 4 years.
The US economy is roaring ahead and as they are Canada’s biggest trading partner, this has helped the Canadian Dollar too. There is not key Canadian news this week but the US interest rate decision and also the US Unemployment data, all released at the end of the week will all potentially drive GBPCAD rates.
The Pound is also in for a busy period with the latest UK interest rate decision, this could see the Pound rising if the Bank of England raise rates. However, what seems more likely is a weaker Pound if the Bank fail to raise interest rates once again, to live up to the high expectations that have been previously set.
For clients looking to buy or sell Canadian Dollars against the Pound, we have a very busy week ahead and I do feel the Canadian could come off the better. The GBPCAD exchange rate could quite reasonably end up in the 1.68-1.69 range if there is more positive news from the United States and more bad news from the UK.
If you have a Pound to Canadian Dollar currency transfer to make and wish to get a full breakdown of the potential outcomes and discuss possible strategies for maximising your position, please speak to me Jonathan Watson to learn more. You can email me directly at firstname.lastname@example.org.