Joseph Wright
Senior Executive Dealer
Further falls for the GBP/CAD rate?
Will GBP/CAD fall below 1.70 once again?
Request a quoteAfter the interbank exchange rate breaking below the 1.70 psychological support level back on the 22nd of May for a brief moment, the pound has once again found support at this same level. Yesterday is a good example of this, with the day low hitting 1.6993 before returning back above 1.70.
| Currency Pair | % Change (Month) | Difference on £200,000 | |
|---|---|---|---|
 GBP |  CAD | 3.5% | CAD $11,898 |
Those of our clients with an upcoming currency requirement involving the pair should be aware that it’s predominantly sterling weakness that has pushed the pair lower, as there are a number of reasons for the Canadian dollar to be losing value at the moment, but price movement suggests the pound is the weaker of the two currencies.
Oil is one of Canada’s main exports, and the value of CAD often ties into oil’s price fluctuations. This week oil has hit its lowest level since January after U.S. crude inventories unexpectedly surged, owing to concerns surrounding the global economy due to trade wars developments between the US and China/Mexico. Usually this kind of headline grabbing movement would result in a weaker loonie, and whilst we’ve seen CAD lose value against the US dollar amongst other major currencies, it’s remained unchanged against the pound due to pound weakness.
Longer term, I think we could see CAD exchange rates come under pressure owing to the global slowdown fears, but for now the GBP/CAD interbank pair in particular remains just north of 1.70, a drop below this level could occur if a hard-brexiteer win the Tory leadership contest.
Jobs market data key for CAD exchange rates today
This afternoon at the same time as US Non-Farm Payrolls, Canadian Unemployment and the Net Change in Employment figures will be released. The unemployment rate is expected to remain at 5.7% and I would expect to see any deviations from this figure potentially result in volatility for the loonie. Do feel free to get in touch if you wish to be kept updated regarding any exchange rate changes.
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UK
Straightforward, efficient and pleasant to deal with. Have used them before and will do again. Joseph is always efficient and pleasant to deal with. The transactions are very straightforward.
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UK
Very efficient, reliable and professional service. Joseph Wright couldn’t be more helpful. Excellent company – no reservations about them.
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Joseph Wright has been an excellent account manager. Joseph is very knowledgeable on events happening in the markets and kept me well informed on my transactions.
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France
Joe Wright was efficient and very clear in explaining and effecting the transaction. He was also empathetic and never irritated by all the questions I insisted on asking. He certainly inspired confidence in your product and I will have no hesitation in recommending your services.