GBP/CAD rates have remained relatively flat over the past week, with both the UK & Canadian economies facing their own set of problems at present. More on the political factors both in the UK and Canada having an impact on GBPCAD rates. The table below shows the range of exchange rates over the past month and the difference in Canadian Dollars you could have achieved in return when selling £200,000.00 during the high and low trading points for that period.

Currency Pair% ChangeDifference on £200,000
GBPCAD1.7%CAD $5,720
Canadian elections causing movement for the CAD

The issues inside the UK have been well documented throughout this report, with UK Prime Minster Theresa May coming under increasing pressure once again. With both the EU and members of her own Conservative party openly questioning the viability of her Brexit strategy, market confidence in the UK has dropped once again, with the Pound finding little support this week.

Investors' risk appetite for the Pound has dipped again following last week’s spike and it is likely that the current air of uncertainty surrounding the Brexit saga, will continue to handicap any major advances for Sterling.

How it will react against the CAD is difficult to predict, with the Canadian economy facing difficulties of its own.

With Canada yet to agree on a NAFTA deal with the US, who have taken the unprecedented steps of negotiating a sperate arrangement with Mexico, any long-term failure to do so could have serious detrimental effects for the Canadian economy.

President Trump is unlikely to soften his stance and even threatened to cancel the NAFTA deal completely, if Congress did not support him on the matter.

With the Canadian economy relying heavily on its exports to the US and abroad, it is essential that a deal is reached. Failure to do this could lead to further trade tariffs being implemented, which would be a major concern for Canada’s export driven economy and ultimately the CAD.

On top of this a recent slowdown in global trade is putting pressure on all the commodity-based currencies, including the CAD, which is one of the reasons it has been unable to make any significant inroads against the Pound, despite the deep-rooted economic issues facing the UK economy at present.

Key economic data this week

Looking ahead and today’s interest rate decision by the Bank of Canada (BoC) could be key for any significant movement of GBP/CAD rates over the coming days. Due to the aforementioned issues facing the Canadian economy at present, it is widely anticipated that the central bank will keep rates on hold at 1.5%.

However, it is the subsequent monetary policy statement, which investors will be paying close to. Any indication of a change in policy, along with any indications of their current concerns, could certainly impact investors risk appetite for the CAD and the markets will likely react accordingly.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

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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.