The pound to Canadian dollar exchange rate continues to see considerable volatility after lockdown measures were introduced and the price of oil continues to fluctuate in these uncertain times. The Canadian dollar has started to strengthen again as countries throughout the world begin to ease their lockdown measures. Italy and New Zealand have announced easing measures whilst Spain and France also are preparing to reignite their economies. The improved outlook for the time being tends to help the Canadian dollar which is a commodity currency. Canada is a major exporter of commodities and so any changes in the global outlook and trade flows can create volatility for the GBP vs CAD pair. Rates for GBP to CAD currently sit at 1.7380 and not far off the 1 week high of 1.75 for the pair.
Those looking to buy Canadian dollars with pounds may be wise to make contact and consider their options as any developments that suggest other countries across the globe are past the worst of the pandemic and could see further volatility for the pair.
Brexit Trade Talk Progress to Be a Key Driver for GBPCAD Rates
Brexit is starting to resurface in the UK and is likely to be a driver for the GBPCAD pair in the coming weeks and months. Last Friday the EU’s trade negotiator Michel Barnier said the talks so far had been disappointing and suggested the UK is running down the clock and not opening discussions on matters that are important to the EU. It is a sign of how fractured relations could become as we approach the end of the transition period at the end of 2020. Canada has a trade deal with the EU and Britain is looking to create something similar, but it is too early to say how these trade negotiations will play out and there could be considerable volatility for GBP CASD on the back of those discussions.
In the UK, the markets are awaiting 7th May which is when the government will review its lockdown measures. If Britain is to follow in the footsteps of other EU countries which are starting to come back online, then there could be some considerable market reaction at that time.
If you’d like to discuss these factors and how they could impact an upcoming currency transfer, feel free to get in touch with me, James Lovick, using the form below.