Interbank rates for the GBP/CAD pairing are currently fluctuating at the lowest they’ve been since October 2017 and since beginning of this year alone, has seen a range of movement of approximately 14 cents.
|Currency Pair||% Change (Month)||Difference on £200,000|
As the Brexit stalemate remains, GBP has typically struggled against most major currencies. Last week fresh concerns surfaced that the UK economy is displaying signs that could be leading to a recession, which encouraged further gains for the Canadian dollar.
It was also announced last week that the Canadian economy experienced a surprise trade surplus, which saw its exports to the United States reach a 10-month high. This could be a sign that the economy is bouncing back following a difficult start to the year and could suggest that the pound may experience further pressure from the Canadian dollar.
On Wednesday, the latest interest rate decision from the Bank of Canada (BoC) will be announced and currently the central bank is not expected to make any change to the current level of 1.75%. Since the US Federal Reserve are indicating that there could be at least one rate cut this year, some reports have suggested the BoC may also follow suit.
Therefore, any hint to a change during the built up to the announcement, or during the following press conference could cause volatility for Canadian dollar pairings.
If you would like to learn more , feel free to contact our trading floor directly on 01494 725 353 to speak with our team of experienced brokers.
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