Currency - GBP / Canadian Dollar

The Canadian Dollar weakened sharply over the month of June. This flattered the Pound which managed to push its way from CAD 1.76 to CAD 1.93 in less than a month. Sterling is a tad lower today but still 10 cents above the level it was at just one month ago. That 9.6% rally was in part attributable to the Pound’s new found ‘less bad investment’ status, partly a factor of the Canadian Dollar being dragged backwards by its US counterpart and partly as a result of a very volatile commodity market making life tricky for Canadian exporters. Having tested the highs, we should now see a correction back to the mid CAD 1.80s with clear support seen at CAD 1.8465.