The Canadian dollar has been slightly weaker on global fears as concerns over a slowdown in the global economy weigh on the oil dependent currency. Pound to Canadian dollar rates are perched above 1.70, still presenting an overall favourable position to buy CAD with sterling, compared to the lows during Brexit.
2019 sees the Trade Wars remaining a very important factor on the currency markets, driving the Canadian dollar higher and lower according to the varying degrees of risk sentiment which are developing over the trade concerns.
Despite having lost some ground in recent weeks, the Canadian dollar did find some form last night as investors felt it more likely some kind of truce or progress might be made on the Trade Wars between China and the US. The 1st March sees a deadline for when Donald Trump was planning to raise Chinese tariffs to 25%, which would be a big concern for the global economy.
Sterling has also struggled with the pound losing ground as investors fail to find many positives in the UK’s economic data being released. Yesterday’s Gross Domestic Product (GDP) data came out worse than expected which held back the pound.
All in all, it is likely to be a mixed session ahead as investors expectations remain in doubt owing to the major uncertainty of Brexit and also how the Trade Wars will pan out in practice. Investors need to certainty to make reliable decisions and these two central issues are preventing a clear view on which direction business and commerce can take for the future.
Those looking to buy or sell the pound against the Canadian dollar could find themselves in a tricky position as we look towards a week where Trump continues to talk up the Trade Wars and Theresa May is predicted to try to resurface her deal with Parliament.
Mark Carney will also speak today which could be a market mover for the pound, clients with a position to buy or sell GBP/CAD might wish to get in touch with our expert team to get the latest news as it happens.
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