Sterling supported by Brexit extension
The pound to Canadian dollar exchange rate has been rising and falling along with the sentiments on Brexit, notably the prospect of a no-deal exit for the UK. This element had been majorly holding back the pound in recent weeks, as investors feared that the UK might be leaving the EU on Halloween with no-deal.
More recently, sterling has been rising as investors become more confident over the extension which has now been agreed. We are also awaiting further details regarding the UK election which will be on the 12th December.
Factors influencing the Canadian Dollar rate
For the Canadian dollar, there are many issues investors must contend with including the price of oil, the Trade Wars outlook and also the outlook on both Canadian and US interest rates, to name a few.
With the US having cut interest rates lately, the Bank of Canada are also being carefully monitored as to their policy on interest rates, to see if they too will be likely to be cutting interest rates anytime soon.
Pound to Canadian Dollar forecast
Sterling might well finish the end of the year in a different position to now, as the outcome from election shapes sentiment for the currency.
Political developments are a major factor for the pound, as evidenced in recent years with Brexit. We could therefore see swings in the market as investors await further news on what type of government the UK is likely to have, and what their outlook on Brexit will be.
GBP/CAD levels have been trading between 1.5860 and 1.7760 on the interbank rate over the last 6 months, with lots of uncertainty ahead for both the UK political situation and economic policy, there could be more swings ahead.
If you are considering a trade to buy or sell Canadian dollars for pounds and wish for some of the latest news and information on the rates and the market, please do get in touch to discuss further.