Central interbank exchange rates for pound sterling to Canadian dollars have been slipping recently with rates now sitting close to a month low. Brexit concerns have been heavily contributing to the fall in the value of the pound recently.

Currency Pair		% Change (Month)	Difference on £200,000
GBP	CAD	2.5%	CAD $8,650

CAD weakness on domestic data

The most recent economic data for Canada has been rather negative as new house sales fell dramatically in March from February and were lower than the market expected. Tomorrow we also have the monthly report on house values which is also expected to show a contraction.

These figures have however been somewhat overshadowed by news elsewhere. Brexit news in the UK continues to have an impact on the pound but the Canadian dollar has strengthened sharply against most currencies this last week as oil prices have surged.

This oil rally came after an armed conflict in Libya started and escalated near crucial oil fields. US sanctions and the Organization of the Petroleum Exporting Countries (OPEC) +, production reduction plans, have also contributed to oil prices climbing. With oil being Canada's largest export, any increase in value normally pushes up the price of its currency respectively.

Bank of Canada (BOC) update

Growth forecasts within Canada have come out recently looking sluggish and with figures lower than previously expected. This has in turn resulted in forecasters suggesting that the BOC may well look at changing their forecasts for interest rates going forward. Interest rates are a main driver for any currency so any projected reduction in rates normally results in the currency in question weakening. The governor of the BOC, Lynn Patterson, suggested that the central bank will potentially look at changing its policy at its next meeting scheduled for 24th April.

Deputy Governor Wilkins has a scheduled speech on Thursday this week which could also be interesting.

As a result this is something to watch if you have exposure to the CAD as commentary supporting the potential change in interest rate policy has the potential to impact the CAD’s value.

News

9th April 2020

A Bad Start to the Week for Sterling as UK PM Health Causes Concern

After a troubled start to the week for Sterling due to Boris Johnson's hospitalisation, the pound has recovered some losses following news that the PM was sitting up and in good spirits.

By Jonathan Sherman

GBP Exchange Rates Continue to Be Influenced by Coronavirus

5th March 2020

Will the Bank of England join the Fed in cutting interest rates?

Markets are starting to price in the Bank Of England following in the footsteps of the Federal Reserve's surprise rate cut on Tuesday.

By Royston Howell

22nd November 2019

Pound to Canadian Dollar Exchange Rate Hits 6-Month High, Then Falls Back

Sterling made gains against the Canadian dollar earlier on this week, only to fall back when the possibility of a hung Parliament in the UK became evident.

By Daniel Wright

Canadian Dollar (CAD)

Download our monthly currency forecast

Download here

D. Hill

France

Yet again, a stress free, professional and secure service from FCD. I wanted the facility of moving funds easily from the UK to France on a regular basis and that’s exactly what I get from Steve Eakins and his team.

Read our testimonials