In today’s GBP to CAD forecast I discuss why the Canadian Dollar has been going from strength to strength over the past few months. It’s currently no surprise to see that the currency is the strongest performing G10 currency throughout 2019 so far.
GBP to CAD forecast: Rising oil prices and weakening Pound pushing GBP to CAD rates lower
Rising oil prices have aided CAD value which has helped the currency make some impressive gains against the Pound and the US Dollar recently. Some analysts think the currency could continue to strengthen throughout the year, including the Royal Bank of Canada which is the countries biggest lender.
The weakening Pound has helped aid the GBP to CAD exchange rate to fall. The GBP/CAD pair are now trading over 10 cents lower than the annual high, which was in the 1.77’s and took place back in March.
A potential downside for the Canadian Dollar moving forward could be a slowdown within the global economy. This would likely have a negative impact on CAD exchange rates due to CAD being a commodity currency. With the US expected to cut interest rates next month due to these fears I think those readers planning on selling Canadian Dollars soon should be aware of this.
Domestically, the Pound has been relatively flat whilst the Conservative leadership contest continues. It’s likely that the winner will be announced towards the end of next month so we could see the Pound continue to trade within thin ranges until this announcement. This is bad news for Sterling sellers after the Pound lost a lot of value in the second half of May, and has since remained towards these lower levels.
Economic data expected this week
In terms of economic data the next release out of the UK will be tomorrow’s Gross Domestic Product data, which will cover economic output for the UK. 0.5% on a quarterly basis is expected and I would expect to see any dramatic deviations from this potentially cause volatility for the Pound, although the readings are usually very accurate.
Please do send me a message using the form below if you wish to be kept updated on the GBP to CAD forecast, or if you have any questions about exchange rates or how to transfer currency.