What can we expect from GBPCAD in the next week?

The pound has had a volatile few weeks against the Canadian dollar with rates ranging between 1.66 and 1.70 as investors take stock of the upcoming US interest rate hike and also developments in the UK political situation. Current market predictions centre on a stronger pound as Brexit negotiations gain some momentum and the worst fears for the UK and the pound fail to materialise.

GBPCAD has hit some fresh highs touching almost 1.70 of late which is some of the best rates we have had to buy Canadian dollar since the Referendum. This has in part been down to developments in the US political situation, the prospect of US interest rate hikes and also discussions over the prospect of raising interest rates in Canada.

If you are looking to buy or sell the Canadian dollar against sterling we have some important developments before the end of the year which could easily see the rates change. Personally I feel there is more chance of the pound falling against the Canadian dollar than rising. We have some key developments on Brexit coming up which I feel will see a resurgence of the uncertainty that has plagued the pound since the vote last June.

Rates to buy Canadian dollars are much improved of late presenting some of the better times to buy Loonie dollars with pounds since the vote last June. Whilst the pound is performing much better against a number of currencies the outlook remains uncertain so taking stock of current levels is I believe a sensible option.

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.