Canadian Dollar sees movement as Trade Wars continue
Pound to Canadian dollar exchange rates have been volatile owing to the continued lack of clarity surrounding the Trade Wars. We have seen the Canadian dollar volatile as the markets try to second guess what lies ahead for the dispute with China and the US, plus how this will affect the global economy.
As a commodity currency the Loonie dollar is sensitive to developments with the global economy. The Canadian economy is a major exporter of raw materials, including Oil and Lumber. Key export destinations are the United States and concerns the US might need to cut interest rates again have weighed on the Canadian currency.
Pound to Canadian Dollar exchange rate falls slightly from Friday highs
With sterling finding its feet, the pound has regained some composure, which has seen it rise against the Canadian dollar, seeing the GBP/CAD exchange rate rise to 1.62 at present. However, the previous highs were 1.6349 reached on Friday 23 August, when it looked like the China situation was deteriorating fast.
The pound has been benefiting from increased confidence some kind of deal might be struck, although other media reports suggested that the recent optimism had been misread. Only time will tell what happens with Brexit, but it remains a very important topic for the pound and it seems reasonable to expect it to continue to drive the levels ahead.
Pound to Canadian Dollar forecast
The remainder of August will see increased focus regarding the outcome from the trade wars and also Brexit, any clients looking to trade pounds to Canadian dollars or Canadian dollars to pounds could find continued volatility owing to these events.
Looking to this week, we will have economic news in the form of GDP data for Canada, as well as UK house price data. Thank you for reading and if you wish for more information regarding our services, please speak to myself or our team directly.