Will GBP/CAD break 1.76 and could the BoC interest rate decision influence CAD exchange rates?

Pound to Canadian dollar forecast: Will GBP/CAD exchange rates drop below 1.70?

After a slight sell-off yesterday the Pound to Canadian Dollar exchange rate has started the day well, with the pair lodged just below 1.76 at the time of writing.

The GBP/CAD rate has recently found resistance around this benchmark, although throughout the past year we have seen the pair climb as high as the 1.84’s so I believe that we could see the GBP/CAD rate break 1.76 and test 1.80 again should we see a boost to Sterling or CAD weakness.

Brexit still key driver for GBP rates

Brexit updates remain the main driver of GBP value at the moment, especially now that the Brexit is expected to take place on the 29th of this month. We’re now also just a week away from the next key vote on UK Prime Minister May’s Brexit deal. The vote on the 12th could cause movement for GBP exchange rates as it could determine whether the UK leaves the EU later this month. If you would like to plan a transfer around this date or would like a second opinion, do feel free to register your interest with me.

Canadian interest rate decision tomorrow

From the Canadian side we could see rates impacted sooner rather than later as tomorrow there will be an Interest Rate decision from from the Bank of Canada. At the moment the base rate in Canada is 1.75% and whilst no changes are expected, any allusions to future plans of further cuts or even hikes could result in movement for CAD exchange rates, as we saw last year.

The decision and the statement from the Bank of Canada will take place at 3pm tomorrow UK time, so do feel free to get in touch before then if you wish to be updated should the exchange rate spike.

The governor of the Bank of England will also be speaking later this afternoon, and UK Attorney General Cox and Brexit Secretary Barclay will be negotiating in Brussels today with EU counterparts regarding a deal to prevent a permanent Irish Backstop. Any major updates regarding this meeting could also impact GBP exchange rates.

If you would like to be updated in the event of a major market movement, do feel free to register your interest with me by sending me a message using the form below: