The pound has fallen sharply against the Canadian dollar today after the Supreme Court ruled against the government which means that Parliament must now be consulted before Article 50 is invoked. What is interesting is that the dissolved assemblies will not have so much of a say in Brexit as some of them perhaps wanted. It is now clear in law that the Scottish Nationalist Party will not have the power to approve the triggering of Article 50. It is my view that this makes life considerably easier for the government to push for the so called hard Brexit which the government is leaning towards and this could see the pound fall further.
Rates for GBP CAD have fallen by almost 1% from the high this morning taking levels down to 1.64 for this pair. Politics are likely to be very interesting in the coming days and weeks as more details and opposing views are put forward. There are likely to be some good opportunities for buyers and sellers alike amidst all the political volatility surrounding Brexit which is having a direct impact on the price of sterling.
Developments from the US in terms of trade agreements and the protectionist stance being taken are also likely to impact on Canadian dollar exchange rates. Canada has strong ties with the US and whilst President Trump may be tearing up other agreements he is likely to keep strong alliances with some nations such as Canada which could actually help the Canadian dollar going forward. Economic data is light for Canada this week so eyes look forward to manufacturing data next week on Wednesday.
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