The pound to Canadian dollar is now trending higher as the pound finds some value on expectations that there might well be some progress between the Conservative and Labour Parties cross-party Brexit talks. There has been an increased expectation too that the Bank of Canada could be scaling back their plans to raise interest rates for the future.
GBP/CAD rates close to year highs
The pound to Canadian dollar rate is very close to some of the best levels we have had all year, presenting some of the better rates to buy Canadian dollars with pounds. Versus the 2017 lows of 1.59, we are now some 16 cents higher which is presenting an excellent opportunity which might not last.
I was personally quite surprised to not see the pound taking more of a hit from the news of the local elections which have just underlined how badly the UK political situation is at present. There are increased calls now for Mrs May to re-evaluate her plans but so far the pound is largely unmoved.
As mentioned at the start of this post, sterling is actually slightly higher as there has been a renewed expectation some type of deal might be reachable in the coming weeks between Labour and the Conservatives. The concerns over the direction on Brexit will continue to be a major factor on GBP/CAD exchange rates, I would not expect the good news to just carryon and on personally.
Clients with a requirement to buy or sell Canadian dollars against sterling have a busy period coming up with Canadian unemployment data next week and the all important Canadian interest rate decision on the 29th May.
Sterling could now be in the firing line too from the European elections on the 23rd May too, and whilst the Loonie dollar might lose value, I would personally be more concerned that sterling would be the bigger loser on this pairing in May.
If you would like to know more about the factors affecting current pound to Canadian dollar exchange rates, you can contact me directly using the form below.