Strong Canadian Dollar vs weak British Pound causing steady decline in GBP/CAD rates
The pound to Canadian dollar exchange rate has been on a steady decline since the start of May, when it became apparent Theresa May would be resigning and a more no-deal Brexit supporting PM might take charge. Sterling has been losing ground regularly against most currencies as no-deal Brexit prospects increase, as investors fear the worst ahead.
The Canadian dollar has been stronger too as the price of Oil rises, and also the Bank of Canada (BoC) maintain their current interest rate. Whilst ongoing trade tensions with China and the US, and a generally lower global economy, had all heaped pressure on the BoC to look to cut rates, the BoC held firm at their recent July meeting.
Trade War truce steady’s CAD
The current truce in trade tensions between the US and China has also helped restore some confidence for the Canadian dollar, which is now stronger. Whilst these type of issues could threaten the strength of the Canadian dollar, by undermining global confidence in this commodity currency, at present the CAD is stronger.
Pound to Canadian Dollar exchange rates: What has been happening on the currency markets
GBP/CAD levels are currently 1.6204 on the interbank rate, some 15 cents down from the May 2019 peak at 1.7739. The fall is for the reasons above and the current market does not appear to be about to offer any significant changes. What looks important ahead is the confirmation of who will be the next UK Prime Minister, this could see some volatility on sterling exchange rates.
GBP/CAD rates have been on a lower trajectory for the reasons above, but events can quickly turn around, as the currency markets are ultimately unpredictable, reacting to the unfolding of global events.
If you have a position to buy or sell pounds and Canadian dollars, why not speak to one of our team to get the latest news that might drive the price in the future.