Will GBP/CAD drop below 1.70 in the near future?

GBPCAD Exchange Rate on the Rise with Brexit Party Ruling Out Tory Seat Contention

GBP/CAD has dropped back a little in the past few weeks following political headaches for U.K Prime Minister Theresa May and an interest rate rise coming from the Bank of Canada, the political tensions have weakened the Pound and the interest rate rise helped to give the Canadian Dollar strength.

Many clients that are looking to emigrate to Canada have been getting in touch with me to ask just where I see the pairing heading next and so here are my personal thoughts.

On the plus side for those looking to buy Canadian Dollars, the U.K Parliament have now gone on summer recess, so this may offer a little respite from Political instability and this may give the Pound a slight lift.

The real key moment for me on the GBP side however will be whether or not the Bank of England make a move to raise their interest rates next Thursday. Currently we are seeing an almost 50/50 chance that rates will be hiked, should this chance increase and ultimately should the Bank of England make a move to raise rates then the Pound would more than likely start to climb and pull away from the 1.70 mark quite comfortably.

On the CAD side, the recent rate rise and the fairly stable oil price has been a plus, along with the reasonably positive words following the rate hike from the Bank of Canada. The main concerns at present are the slowly moving NAFTA (North American Free Trade Agreement) talks and the possibility of Donald Trump suddenly launching in with a bullish approach as this could dent the value of the Canadian Dollar.

For those looking to exchange GBP into CAD or to send CAD back into GBP I really do feel that the main event for you will be the build up to next Thursday’s rate decision and what comes from it.

If you are in the position that you need to carry out an exchange like this and you would like my personal assistance with it then we always welcome new clients on board, I have helped thousands of clients in your position for over a decade and will be more than happy to speak to you about your specific position.

Feel free to email me using djw@currencies.co.uk and I will be more than happy to contact you to discuss the options we have available to you. If you’d like to speak on the phone feel free to call in on 01494 725 353.