The Pound has had a bad start against all major currencies this week along with losing ground against the Canadian Dollar.
Yesterday Prime Minister Theresa May suffered a barrage of difficult questions at the House of Commons as she made the move to postpone her crucial Parliament vote regarding the Brexit deal that she has managed to negotiate.
Prime Minister May will head back to Brussels to renegotiate, however it is hard to see her making enough progress to be able to satisfy those that are currently against the deal and I really do feel that she is in for a hard few weeks ahead.
Political uncertainty can be damaging for a currency and this current bout of uncertainty is really bad news for Sterling exchange rates, which is exactly what we witnessed over the course of the trading day yesterday.
We have seen rates lift a little overnight and at the time of writing this Sterling had crept back up above the 1.69 level against the Canadian Dollar, as the dust has settled slightly.
Canadian economic data improves
Canadian economic data released last week showed an improvement, which led to slight strength for Canadian Dollar exchange rates.
Canada reported a record-breaking number of new jobs created, posting 94,000 new roles filled during the course of November. The release had been expected to be sat around 10,000 so this came out a lot better than expectations.
New homes data also exceeded expectations yesterday and this positive news can only do well for the Canadian Dollar in what has been a difficult period.
Oil prices have been extremely volatile and have dropped significantly. The U.S – China trade wars have also not helped the strength of the Canadian Dollar either.
Where will Sterling head next against the Canadian Dollar?
Personally I feel that the Pound is in for a difficult period ahead against all major currencies and I really cannot see Theresa May negotiating her way through these choppy waters.
What comes next is extremely hard to predict, as when a market is so politically charged you just do not know what is going on behind closed doors. It does seem that there are a number of people waiting in the wings to try and remove Theresa May and to take full advantage of the current situation.
Should Prime Minister May receive further pressure then I would expect this to weigh heavily on the Pound and I would not be surprised to see Sterling drop closer to the 1.65 level against the Canadian Dollar, rather than push comfortably above 1.70.
Where do I get the best exchange rates for Canadian Dollars?
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