The pound has gained ground against all major currencies in trading today, with rumours of a Brexit deal being in sight leading to sterling strength across the board.
We have seen a similar situation on a number of occasions over the past few months only to see the rumours shot down and the value of the pound decreasing again fairly rapidly.
This time around it does look like we may be actually due to see positive news surrounding a deal and because of that we have seen the pound gain significantly against not only the Canadian dollar but all major currencies.
Personally I can now see GBP/CAD pushing on and gaining further ground as we head towards the end of the trading week, unless comments from the U.K or EU negotiating team suggest that things are not moving along as positively as the markets are suggesting.
Tomorrow the key data out aside from any further Brexit news will be unemployment figures from Canada, along with Canadian import and export data too. Expectations are for unemployment figures for Canada to remain at 5.9% but should there be any change to those expectations we may see Canadian dollar volatility over the course of the afternoon.
Oil prices also slumped today which also will be seen as a negative for Canadian dollar exchange rates, with Canada being a big exporter of oil, the price of oil can directly impact the value of the Canadian dollar. A rise in oil prices can be positive and a drop off can lead to Canadian dollar weakness.
My personal view now is that I would not be surprised to see further movement in sterling’s favour over the course of the next few days, and if you are in the process of carrying out a exchange involving the Canadian dollar and the pound then this is a market to watch very closely.
Brexit news could come out at any time, if you are in the position where you have an exchange to carry out and you would like my assistance then I will be happy to be your eyes and ears on the market. Feel free to fill in the form below if you would like me to get in touch directly.