Many of our regular readers will have started to become sick of the word Brexit a long time ago, however at present for those looking to buy or sell foreign currency in the coming weeks and months I am afraid you will be hearing it more and more often.
Last week Brexit was the main driver for the Pound against the Canadian Dollar, and it even managed to lead to Sterling losing ground against the Canadian Dollar whilst we saw a decline in the price of oil by over 7%.
Usually, such a drop off in the price of oil can lead to Canadian Dollar weakness, however on this occasion the weakening oil price was well and truly overshadowed by Brexit uncertainty and the political issues that this also bought to the UK and Prime Minister Theresa May.
Economic data out today
On top of any Brexit news there are a few points of note in terms of economic data today. Later this morning Bank of England Governor Mark Carney is due to speak to the House of Commons to deliver his inflation report to them.
This will be Carney’s first appearance since the publication of the Brexit withdrawal agreement so it is likely that many will be hanging off of his every word. Mark Carney has historically been fairly negative about Brexit as a whole, so should his comments today suggest that he feels the economy is in for a shaky period then the Pound may well lose further ground over the course of the morning trading session.
In terms of Canadian data this week the focus will be on any movements in the price of oil, along with a flurry of economic data on Friday afternoon. This data includes Retail Sales figures and inflation so this may lead to a fairly volatile end to the week for Canadian Dollar exchange rates.
All in all the key for this pairing will be what happens next to Theresa May and Brexit. So far it looks like she has batted away any imminent danger, however there does appear to be many of her close enemies waiting in the shadows.
If you have a currency exchange to make in the coming days, weeks or months and you would like the assistance of a proactive, highly experienced and knowledgeable currency broker then feel free to get in touch with me by filling in the form below. I will then contact you for a no obligation discussion about your personal position and explain just how I may be able to help you. I look forward to speaking with you.