The Pound has gained almost 10 cents against the Canadian Dollar in just the last 2-weeks, as the Pound continues to rise on the back of the election called by Theresa May, the UK Prime Minister.
I expect the election and speculation surrounding it to impact Sterling exchange rates over the next few months, due to the differing plans and outlooks from the UK political parties regarding the Brexit. As it stands the conservatives are favorites to win come the election in June, and that certainty has offered the Pound support but how long this trend lasts remains to be seen.
With regards to the Canadian Dollar, there are also a number of issues that could impact its value. The currency has weakened in the wake of rising geopolitical tensions surrounding Syria and also North Korea, as being a commodity currency its likely to remain under pressure until these issues subside.
The US President, Donald Trump has also been highly critical of the North American Free Trade Agreement in recent weeks which has also weighed on the Loonie’s value.
There’s little key data out of the UK and Canada this week that’s likely to impact the GBP/CAD rate directly, but perhaps this Friday’s UK GDP data that will be released at 9.30am will impact the rates should the figure deviate from market expectations of 2.2% annually.
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