GBP/CAD Quarterly Update
Decembers political roll coaster saw GBPCAD head towards year lows holding @ 1.68 on the expectation of failed talks between the UK and EU. Fortunes quickly changed, as hopes of a Brexit deal saw Sterling’s latest attempt to break 1.75.
With the uncertainty removed surrounding Brexit forecasts had Sterling marching higher, however, the last minute nature of deal left GBP susceptible to more selling weakness. Attention quickly turned to the impending fresh set of COVID lockdown measures in the UK, starting with a sell off following announcement Scotland was to heading for lockdown, quickly followed by England.
Canadian Dollar like its fellow commodity currencies NZD and AUD is enjoying levels last seen a couple of years back against the USD. With increasing Oil prices are fuelling expectation of much of the same to start 2021.