Pound to Canadian dollar exchange rates have been trading at 1.6355 on the interbank rate, sterling having been buoyed by the recent improvements in sentiment relating to the outlook on Brexit. With just 24 days until the 31st October deadline, there is scope for increased volatility on GBP/CAD levels as the markets await the latest news and outcomes.
Canadian election: Canadian Dollar to experience volatility over political uncertainty
Across the pond and slightly further north, the Canadians are gearing up for their election on the 21st October, which has been attracting global media coverage. The election is being reported as effectively a referendum on Justin Trudeau, the current Prime Minister. A key issue is the economy and also the environment, the Liberal Party Trudeau stands for is close in the polls with the Conservatives.
The Loonie dollar may well experience some volatility around the time of the election owing to the lack of clarity over the potential outcome. Expectations ahead for the Canadian dollar will also include interest rates and the possibility of any deterioration of the US-China Trade Wars.
Trade Wars causing uncertainty for GBP/CAD rates
On the subject of Trade Wars, there has been a shift in sentiment, as investors become more nervous about the likelihood of a deal. Such developments are important for pound to Canadian dollar exchange rates as the US is a major trading partner of Canada, plus the Canadian economy exports a lot of Oil, the price of which has been influenced by the Trade Wars.
Sterling to Canadian dollar levels have faced a number of different challenges in recent weeks and the development of both Brexit and the Trade Wars are just some of the unpredictable events that we are dealing with.
For now, there is little specific data for Canada this week, for the UK and the pound we have the latest set of growth data which might prove a factor on GBP/CAD exchange rates.
Ahead, GBP/CAD could be pulled in all sorts of different directions with so many key pieces of news on the calendar. If you have a transfer to consider, why not speak to our team to better understand how these events will unfold and may impact your exchange rate.