GBP has struggled to maintain form and retain gains against the CAD, following the steep decline experienced at the end of Q1 this year.

The pairing has failed to remain far above 1.70 and current mid-market levels are around 2 cents from what has been arguably a support of 1.66. This sharp volatility over the best part of 4 months has meant that the timing of transfers has been key in order to secure a favourable position.

In the last month alone, the pairing has seen movement of over 3%, which in monetary terms has meant that well timed transfers at the highest points could have achieved approximately $10,000 more on a £200,000, in comparison to the lowest.

Currency Pair% Change in 1 monthDifference on £200,000
GBPCAD3.17%$10,600

What to consider for upcoming GBP/CAD transfers?

The main drivers of this movement have largely been linked to the Central Bank of Canada’s decisions to regularly hike interest rates this year in response to rising inflation, in conjunction with the pressures GBP has been under, due to ongoing Brexit uncertainty.

What to consider for upcoming GBP/CAD transfers?

It's also important to consider that a key influence in CAD strength is the price of crude oil, as this accounts for approximately 10% of the countries total Gross Domestic Product (GDP) and despite the slight decline in the price of the commodity in the short term, the CAD has benefitted from the general rise this year. There are no major economic data releases due before the weekend, however investor attention will now be turning to Inflation and retail sales data next week, as this will likely influence whether there will be a further hike to interest rates at the start of next year.

With the GBP/CAD pairing experiencing such volatility, clients with an upcoming transfer should stay in touch with their account manager, in order to plan around important economic releases to help manager their exposure to the live market.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.