The pound has made excellent gains against the Canadian dollar today with rates pushing to levels just below 1.65 for GBP CAD. The pound has made good gains across all of the major currencies, particularly in afternoon trade. The movement appears to be as a result of developments in the House of Commons today where discussions and a vote have taken place. A deal or no deal offer is now likely to be given to parliament which seems to be lending support to the pound. It ultimately means that Psrliament will have a greater say which means slightly less chance of a harder Brexit, something that gives the markets some reassurance.
High volatility is to be expected in the coming days and weeks as the reality of Brexit is now very much in sight nearly 9 months after the vote for Britain to leave the European Union. Whilst economic data in the UK is hugely important it is my view that politics will be the single biggest driver for sterling exchange rates in these next few weeks.
Data is light for the UK this week with manufacturing and industrial production numbers which could make for an interesting end to the week. Meanwhile in Canada housing data and unemployment numbers released on Friday could shape the Canadian dollar.
Those clients looking to buy Canadian dollars would be wise to take advantage of the recent spike as there are likely to be some political fireworks to come from the UK with Brexit just around the corner. There is a considerable risk that GBP CAD could fall lower in the short term.
If you would like further information on sterling or Canadian dollar exchange rates and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on email@example.com