- Positive inflationary figures done little to help Sterling
- Oil prices helping CAD
- GBPCAD rates could fall to low 1.60’s
Positive data for the UK provides no support for Sterling
The positive inflationary figures for the UK this morning provided no further hope for Sterling. For some July’s CPI data provides no measurable analysis of how the UK is performing since the vote to leave the EU. For others, the complexities surrounding the decision to leave the EU will likely take years to materialise.
In the mean time, the UK is sat in limbo with no clear direction, Pound Sterling continues to take blows.
Higher oil prices widen the gap for GBPCAD rates
Oil prices have shown moderate gains in recent weeks, whilst some are expecting further gains there are a number of reasons to be cautious of such claims. Iran and Saudi Arabia are flooding the markets with cheap oil, coupled with lower demand this could be a recipe for further falls in oil prices.
GBPCAD rates could fall unto the low 1.60’s
It’s unlikely that oil prices will fall drastically in any event in the immediate future. The main driver for rates will continue to be Brexit, and with little to help Sterling in the short term, rates could continue their downward trend with little support.
Given that this morning’s positive data did little to help Sterling, any further negative news in the coming months could be a catalyst for more Sterling losses, I would encourage individuals who are looking to buy CAD to consider the above. Further improvements in oil prices could weigh heavily on GBPCAD rates.
I am expecting rates to fall to ranges of 1.62-65 in the weeks ahead, so making the most of current levels could save you financially.