Canadian Dollar strength: The Canadian dollar is looking like it might well find more traction against the pound as the Canadian economy goes from strength to strength which will only help the currency to find form. It looks like the US economy is continuing to perform very well and this is giving rise to a stronger Canadian economy and helping the currency to rise.
Will the pound weakness?
The pound is also struggling following concerns of progress with a Brexit deal, and also market jitters over the Bank of England meeting and Quarterly Inflation Report which is due on Thursday. This would likely see the pound falling in value as it is well known that Mark Carney, Governor of the Bank of England, is not a fan of Brexit. With no progress being made on Brexit so far, any hints by Mark Carney that future monetary policy must remain conscious of this could see the pound weaken.
When is the best time to buy Canadian dollars with pounds?
Clients who need to buy Canadian dollars with pounds would I feel do well to try and take advantage of any small spikes as it does appear the current market will not go in there favour. The Bank of England meeting on Thursday is a major event and it is difficult to be overly positive about the future direction this will take.
With the Canadian economy performing well and there being a strong likelihood they will be raising interest rates in the future, just like their main trading partner the US, we could see the CAD finding more favour in the weeks ahead.
Clients with a position buying or selling Canadian dollars will do well to take stock of the current market and uncertainties ahead. Overall expectations are for a volatile period ahead as we enter the final stages on the Brexit, this could see a very choppy period on GBPCAD exchange rates.
If you have a GBP/CAD transfer to consider and wish to gain some insight and market knowledge on the best strategies to maximise your currency transfer, please do get in touch. You can send me a message directly using the form below and I will respond directly.