The true impact of the vote to leave the EU is ever present on the currency markets. The pound having fallen significantly against all major currencies. There has been little data of consequence out this week form the UK but we have still seen the pound’s value drop. This is predominantly due to high probability that there will have to be a hard brexit after Francois Holland and Jean Paul Junker indicted there would be no trade negotiations unless Article 50 was triggered.
Theresa May has stated that Article 50 will be invoked before the end of March. Until we see decisive action taken with regards to trade negotiations I do not see the possibility of a significant rally for the pound.
As oil is one off the key exports for Canada, Putin’s recent announcement that the Russians will be limiting its output is good news for Canada. This has added further woes for the pound and should the oil pound continue to rise expect the pound to continue to weaken.
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