The pound has continued to gradually slide lower against the Canadian dollar as Brexit developments continue to drive exchange rates. Sterling exchange rates are likely to see considerable volatility both today and tomorrow. This evening will see a vote in the House of Lords over a proposed amendment to the Brexit bill that will seek that a final vote on the terms of Brexit will be offered to Parliament.
This is likely to become a sticking point which could see the Brexit timetable delayed. A majority vote is expected in the Lords which will put pressure on Theresa May and the pound although the general feeling is that the House of Lords will back down once they have made clear their views to the government.
Tomorrow sees the UK spring budget released at 12:30 which can always result in a strong market reaction. The markets will be watching for any revision in the UK growth forecasts and any contingency funds put aside for Brexit. Any improvement in the growth outlook is likely to see the pound strengthen against the Canadian dollar.
The Canadian dollar is heavily impacted by changes in the price of oil especially when considering that oil contributes 25% of Canadian exports. The International Energy Agency has reported a recovery in the oil industry which has been helped by higher demand from India and China. Similarly the Canadian dollar has been assisted by stronger growth in Canada. Those clients looking to sell Canadian dollars are currently looking at some excellent opportunities which may even improve slightly further in this next week.
If you would like further information on sterling or Canadian dollar exchange rates or any of the major currencies 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 protected]