Canadian Dollar drops in line with oil weakness, will GBP/CAD continue to climb? (Joseph Wright)

The Pound to Canadian Dollar rate breached the 1.70 mark once again this morning, after previously hitting that level back on the first day on this month.

Mid-market levels of 1.70 are the highest since June of last year, meaning that those converting their Pounds into Canadian Dollars are able to do so at some of the best levels in almost 18-months.

The reason behind this can be put down to both Sterling strength as well as CAD weakness, as talks of the 23-year old NAFTA trade deal being updated have concerned Loonie investors.

The drop in the value of oil has also weighed on the Loonie’s value as oil is a key export for the Canadian economy, so there are many factors pushing the Loonie’s value lower at the moment which is why we’ve seen the 1.70 level tested again.

Moving forward I wouldn’t be surprised to see the GBP/CAD rate continue to climb, as inflation levels have been falling after two surprise rate interest rate hikes from the Bank of Canada earlier this year. This leads me to believe that there won’t be any further rate hikes in the short term future, with some economists suggesting the Bank of Canada may have been overly hasty hiking rates.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.