The GBP/CAD exchange rate has bounced back after hitting the lowest level we had seen since October 2013 as the rising oil prices cannot outweigh the positive Sterling data we have seen so far this week.
Fantastic Retail Sales and better unemployment data led to Sterling rising against all major currencies and we nearly saw the Pound creep back up above 1.70 yesterday morning.
I actually feel that oil prices will end up winning the battle in the short term on this pairing as the grey cloud of brexit uncertainty continues to weigh down Sterling exchange rates.
The Canadian Dollar is closely linked to oil prices and since the oil price has started to move back up the Canadian Dollar has also strengthened too.
Later on this afternoon at 5pm we have the Baker Hughes oil rig count and considering we have seen seven consecutive weeks of the number of rigs increasing it does look like albeit slowly the industry is starting to pick up again.
Not only do we have the Baker Hughes Oil rig count but we also have a flurry of economic data out in Canada throughout the trading afternoon.
The main batch of data comes out at 13:30pm as we have Canadian Retail Sales (expected to have dropped) and core inflation data (expected to remain steady at 2.1%).
Moving in to next week there is very little in terms of economic data due out that may impact the strength of the Canadian Dollar so I would personally expect the main market movers for this pairing to be oil prices and the Bank of England inflation report in the U.K.
If you need to exchange Canadian Dollars either now or in the near future then it is well worth contacting one of our experienced brokers who will be able to help you maximise your exchange and fill you in on the very latest market movements.
Do you have a requirement for Canadian Dollars or would like to sell Canadian Dollars back into Sterling? Why not find out how our brokers can help you save money on a transfer? Call us on 01494 725 353.
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