Could GBPCAD hit above 1.75?

Today is a crucial data for the GBPCAD exchange rate as we get closer to an understanding of the interest rate outlook for the UK which will be a key driver of the pound. Essentially the pound and currency pairings involving the pound have been largely driven by expectations on the interest rate rising for the UK. With the decision due today at 12 noon, GBPCAD could be in for a busy day! The Loonie has been much softer lately as a softening in tone...
Pound to Canadian Dollar exchange rate Global trade tensions and Brexit to drive GBPCAD rates

Pound to Canadian Dollar exchange rate: Global trade tensions and Brexit to drive GBP/CAD...

The pound to Canadian dollar exchange rate has continued to fall due to Brexit talks coming to a standstill, despite last week’s disappointing Canadian GDP release. Canadian economic developments: Effects on GBP/CAD exchange rate Posting 0pc growth for July, the markets were disappointed with the figures having expected a 0.1pc expansion. Canada’s economy had outperformed during Q2 as oil prices crept up and exports increased enabling the economy to grow at a healthy 3.7pc annualised figure, its strongest in years. However, sterling failed to take advantage...
Pound to Canadian Dollar rate hits 20 month low could further falls be in store for the Pound

Expect substantial volatility today for CAD Rates

In an hour at 9:30am GMT inflation data for the UK economy will be released. Recently the data released from the UK economy has been extremely poor in this area. Inflation actually fell to a negative deflationary number last month but is expected to rebound this morning. Deflation in principle is considered disastrous for an economy. Japan entered a deflationary spiral which is could not escape from for 20 years. An increase in the inflation number this morning will spell Sterling strength and we...
Pound to Euro forecast Sterling slides against major currencies as Brexit negotiations stall

NAFTA breakdown has potential to weaken CAD (Daniel Johnson)

Trump plays hard ball on new NAFTA deal Donald Trump has decided to renegotiate the North American Free Trade Agreement (NAFTA) which has been in operation for over twenty- three years. Trump believes Mexico and Canada have benefited from the agreement, but hasn't been as lucrative as it should be for the United states. Trump believes NAFTA was a disaster and went as far as to say it is "the worst trade deal in history." Mexico, Canada and the US have now sat down to renegotiate the...
GBP/CAD Exchange Rate Holds Steady as Investors Wait for US Fed Rate Decision and UK Election Outcome

CAD Forecast – BoC Interest Rate Decision Unlikely to Boost CAD’S Value (Mattew Vassallo)

Any clients with a short-term CAD currency exchange requirement will be keeping a close eye on Wednesday’s Bank of Canada (BoC) interest rate decision and subsequent monetary policy statement. The BoC are expected to keep rates on hold at 1.25% and with economic uncertainty around the Canadian economy at record highs, I would be very surprised to see a rate rise even muted under current market conditions. The CAD itself has been under increasing pressure for much of 2018, with heavy losses against Sterling and the...

Pound gains on the Canadian Dollar as hopes of the Brexit starting this week...

Sterling gained across the board of major currency pairs today as investors ramped up hopes that Article 50 will be triggered this week. Some believe the triggering of Article 50, and therefore the formal beginning of the Brexit process, could take place as early as tomorrow if the Brexit will is passed through parliament. Whilst the Pound gained value today against all majors, some are expecting to the see the pound fall in the wake of the start to the Brexit, but based on today's performance...
GBPEUR rate remains steady as markets await the Autumn Budget

Why did the Canadian Dollar fall when interest rates were hiked? (Joseph Wright)

Yesterday the Bank of Canada chose to raise interest rates for the third time in the last year. The interest rate now sits at 1.25% and those that decide on making the decision to change interest rates have stated that this decision can be put down to increasing inflation levels, and an a strong Canadian economy. Many economists and market traders had predicted the move and the Loonie had been increasing in the lead up to the decision, and once it was made official many took...
Pound to Canadian Dollar rate hits 20 month low could further falls be in store for the Pound

Pound to Canadian Dollar rate hits 20-month low, could further falls be in store...

Sterling is coming under increased pressure against a number of major currency pairs with the Canadian dollar being one of the stand out currency pairs. We have previously touched on the fact that CAD is the strongest performer of the G10 so far in 2019, and with the pound having quite a torrid time over the past month and a half the GBP/CAD pair have been in free-fall which has left Canadian Dollar sellers in a great position. Jeremy Hunt gaining momentum in Tory leadership...
Pound to Canadian Dollar rate hits 20 month low could further falls be in store for the Pound

GBPCAD drops like a stone

This afternoon the Bank of England announced their latest interest rate decision and the monetary policy committee voted in favour of hiking interest rates to 0.5% which was the first rate hike in 10 years.  Many of my clients were under the impression that the pound would soar against the Canadian dollar off the back of the news however the pound actually dropped over 1.5% against the Canadian dollar. The rate hike was seen by investors as a dovish hike. What I mean by this...
GBP/CAD Exchange Rate Holds Steady as Investors Wait for US Fed Rate Decision and UK Election Outcome

Sterling remains steady in early trading as details of the Brexit extension are announced

The pound is continuing to hold onto the recent gains made this month, as the pound to Canadian dollar continues to trade around the 1.67 - 1.68 level. Brexit extension granted by EU Donald Tusk announced at 9.30am this morning that EU leaders have agreed to extend the Brexit departure date until the 31st of January, with markets relatively unchanged as this was the general expectation despite some strong words from French President Emmanuel Macron who had alluded to blocking the 3-month Flextension as it's being...