Snap election benefits the Pound
Theresa May announced on Tuesday she would be calling a general election 8th June. Historically, a snap general election would cause the currency in question to weaken, but on this occasion the opposite has occurred. The Conservatives are currently significantly in front in the polls and are solid favourites to win the election. It was a shrewd move by the PM, almost guaranteeing another term in office by timing the election when the competition is so weak.
A conservative government is considered to be positive to the UK economy and investors gained confidence following the announcement, due to this we saw significant gains for the pound against the Canadian Dollar.
OPEC Deal key factor in Canadian Dollar strength
The Organisation for Petroleum Exporting Countries is currently in negotiations to extend a limitation on oil production. Saudi Arabia’s oil minister Khalid al-Falih said “Consensus is building, but it is not done yet,” he told reporters at an industry event in Abu Dhabi on Thursday. “We are still in consultations.”
If the extension does come to fruition this will be positive for the Canadian dollar. Oil is Canada’s main export, any change in oil price has an effect on the Canadian Dollar. If you have a currency transfer involving the Canadian dollar it would be wise to keep up with events as the unfold.
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