In today’s pound to Canadian dollar forecast we look at what will happen with Canadian Dollar exchange rates this week?
Canadian dollar exchange rates could be affected by US mid-term elections
The Canadian dollar has remained fairly steady against the majority of major currencies in the early part of the trading week, as the markets brace themselves for the US mid-term elections.
With the Canadian economy being fairly closely linked to that of its US counterpart, news from the US can have a slight link to the value of the Canadian dollar. We have seen the US Dollar weaken a little over the past 24 hours as political uncertainty creeps in. Any further uncertainty from the mid-term elections may start to weigh on the Canadian dollar and make it a little weaker against other currencies in the next 24 hours or so.
Canadian economic data this week
In terms of Canadian economic data this week we do appear to be fairly thin on the ground for larger releases. However, do be aware we have Building Permits data today, Purchasing Managers Index (PMI) data tomorrow and New Housing Price Index on Thursday. These releases may lead to a little volatility for the Canadian dollar should they come out widely different from expectations.
Pound to Canadian dollar forecast
One currency the Canadian dollar is losing ground against this week is the pound. Sterling is performing well against all major currencies so far this trading week. This is mainly down to positive news coming out of Brexit negotiations. Any good news, or even the hint of it regarding a Brexit deal has tended to strengthen the pound over the past few months and in the last week or so it does appear that the UK is edging closer and closer to a deal with the EU.
Should a deal (or provisional deal) be reached then I would expect Sterling will continue to gain ground on the Canadian Dollar and a rate of 1.75+ would not be out of the question. On the other hand, if you are due to be buying or selling Canadian Dollars with the Pound then be very wary that on a number of occasions a Brexit deal has been close, only for talks to break down and the rate to come back down again.
If you have a currency exchange to make involving pound to Canadian dollar or vice versa, it is well worth getting in touch with me directly, not only can I help you with any upcoming data and how it may impact your exchange but I can also assist you in getting the best rate when you come to carry it out.
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