Will a Brexit deal be agreed today?
We have an extremely important day ahead for those looking to buy any foreign currency with the Pound and quite frankly the exchange rate could go either way. A Brexit deal is very close to being initially agreed, however there are still many hurdles to overcome.
The day has already started off with a great deal of volatility as investors and speculators try to second guess what may come of this afternoon’s cabinet meeting. Theresa May is due to sit down with her cabinet to discuss the Brexit divorce deal which has been technically agreed at 2pm.
Some believe that there could be huge issues for Prime Minister May, and there has already been a great deal of jawboning over the current plans. If we start to see a heightened chance of the plans being voted down or even a hint of resignations then Sterling may lose significant ground against the Canadian Dollar as the day progresses.
On the flip side, we could have the situation where everything looks rosy and we are one step closer to the agreement many had been waiting for. This would likely result in the announcement of an EU summit, potentially on November 23rd to try and move the Brexit agreement to the next stage.
As many regular readers will be aware, Sterling is extremely susceptible to Brexit news at present and this week news is rife and there is the chance of either real progress or a major issue for the UK Government.
Personally I feel that we will see this passed this afternoon and Sterling may go up, but this won’t come without any hurdles along the way. If you have Canadian Dollars to buy or sell in the coming days or weeks then it is key you watch the markets, as the rates move every second of the day.
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Oil prices also may impact the Canadian Dollar
Another matter that is affecting Sterling to Canadian Dollar exchange rates is oil prices, which have just hit a 12 month low. With Canada being a large exporter of oil, a drop in oil prices can weaken the Canadian Dollar.
There are rumours that OPEC may make a move to cut oil production in the near future in order to try and stop the current market weakness, and should they announce this plan then we may see Canadian Dollar strength straight off of the back of it.
My view is still that Brexit will be the key point of the day and indeed the rest of the trading week, so watch this space for updates.
If you would like a live update or to discuss your current position then feel free to contact me by filling in the form below and I will be happy to have a no obligation discussion with you about your exact situation.