Sterling made good solid gains against the Canadian dollar during yesterday’s trading session, and has started on the front foot in early morning trading so far today. Over the course of yesterday the pound gained 1.35% against the Canadian dollar and so far this morning we have seen gains of a further 0.4% at the time of writing this article, bringing the interbank exchange rate up above 1.76.
With the current trend for GBP/CAD there is now a possibility that we may see the interbank rate hit the highest point of this trading year which would be a breach of the 1.79 level.
Global Shortage of Oil Storage a Concern in Coming Weeks
We all saw some great volatility with oil prices which then led to volatility for those currencies that can be impacted directly by oil. There are now concerns that global oil storage may run out by the middle of May, so there are expectations that we could witness some severe volatility and pressure on oil prices once again in the coming few weeks, which you would imagine could cause a further headache for the value of the Canadian dollar and might be enough to push GBP/CAD interbank exchange rates to a new 12 month high.
In fact, a break above the 1.80 level which is only at present 2.5% away would lead to GBP/CAD interbank exchange rates being at their highest since 2016.
We have little market data from Canada today and just mortgage approvals due from the UK this morning so economic data today is rather few and far between.
With all of the above in mind we may be braced for a period of extreme volatility for this currency pairing, so if you have a currency exchange to carry out involving GBP or CAD then it may be prudent to have an expert on your side, our brokerage offers market orders, forward contracts and various other ways of protecting yourself from adverse market movements or taking advantage of a spike outside of normal trading hours. If this sounds of interest to you then feel free to fill in the form below and we will get back to you with further information on how we can assist you.
For more information on GBP/CAD exchange rates for an upcoming currency transfer you can contact myself, Daniel Wright, directly using the form below.