Canadian Dollar near highs against Sterling since Brexit vote
GBP has seen its value decline against the CAD over recent weeks, with the pound failing to its lowest levels in almost two years. This year alone GBP/CAD rates have fluctuated by a range of approximately 14 cents, proving that timing is everything when it comes to larger currency exchange. The recent trend has seen sterling’s value decline, in line with growing fears that the UK could leave the EU without a deal in place by the revised Brexit deadline of October 31st.
Boris remains favourite to take No. 10
With the Tory leadership race entering its final stages, how each candidate lays out their mandate for Brexit will likely be key in determining who take the position in number 10. With Boris Johnson still the clear frontrunner, his commitment to leaving the EU by October 31st will likely have an impact the pounds value depending on whether or not the chances of this happening without a deal in place continue to gather pace.
As a result of this uncertainty investors seem to be shying away from the pound, which is helping boost the CAD’s value to the near two year highs the loonie is currently trading at.
Strong performing Canadian economy boosts the CAD against GBP
The Canadian economy is also performing more positively than many analysts had predicted over the first two quarters of 2019, with a recent surge in oil prices helping to boost Canada’s export driven economy. A surprise 762 million CAD trade surplus figure from May also astounded many, considering the current uncertainty in the global markets and a slowdown in the global trade.
The Canadian economy has managed to withstand the current slowdown in the global markets, growing by a greater than expected 0.3% in April. Canadian GDP figures have also been particularly impressive considering the Canadian economies historical reliance on positive global growth to prosper. The CAD has outperformed the other commodity-based currencies, in a time when the current trade stand-off between the US and China is putting pressure on most export driven economies.
If you would like to learn more on current factors influencing current GBP/CAD exchange rates, or have an upcoming currency transfer, feel free to contact me directly using the form below.