The pound to Canadian dollar exchange rate has been oscillating between 1.66 and 1.78 in the last year so current levels of 1.72 are literally ‘mid-range,’ and perhaps reflective of the lack of clarity on a number of issues relating to both the Brexit and also the trade wars and other concerns influencing the Canadian dollar.
Pound to Canadian dollar rate falls due to lack of Brexit progress
The pound is trending lower against many currencies at the moment as the market becomes concerned at the outlook on Brexit and becomes concerned at the lack of progress and Brexit and which direction events will take next.
The pound has been suffering since it is looking less likely that there will be any kind of agreement between the Conservatives and Labour. This is seeing the pound lose value as confidence is strained regarding the positivity which had previously supported sterling.
How the Trade wars could affect Canadian dollar rates
Another factor to consider in the unfolding of events is the latest developments on the trade wars, which will only see the Canadian dollar finding a shift in sentiment. As a commodity currency which is heavily influenced by events globally, the rise and fall of sentiment can drive the Loonie.
Just lately, a shift in the tone of the trade wars had seen the CAD lose ground, only for the immediate fear to fade, helping the Canadian dollar to rise. Expectations in the future for the Canadian economy will be closely linked to the US economy, which is performing well and therefore might help the Loonie to rise further against the pound. Again, the mixed picture if leaving the currency range bound so far.
Pound to canadian dollar forecast
Overall, I expect the pound to continue to struggle in the absence of any fresh positive news on Brexit, which could leave GBP/CAD testing the 1.70 level. Any rising concerns on the trade wars could ultimately strengthen the loonie dollar, if it is felt that the US economy will be the least worse off, following the clashes.
All in all, the picture in the currency markets is mixed, with two very tricky events to make sense of, Brexit and trade wars. The continued uncertainty will only lead to further difficulty to accurately forecast, but it does feel sterling may lose more ground ahead.
Thank you for reading and if you have a transfer to consider buying or selling Canadian dollars against the pound, I would be very happy to speak with you and discuss the latest market news and forecasts. You can contact me directly using the form below.