Brexit continues to hurt the Pound
In this GBP to CAD forecast we look at the events that could impact the pound to swiss franc rates in the short-term. The GBP/CAD rate continues to be dictated by Brexit. The current situation is bleak and it does not bode well for the Pound. Theresa May’s current Brexit deal is due to be voted on by Parliament on 11th December. The PM’s proposal has come under heavy criticism and at present it looks as though the deal will not go through at it’s first attempt.
If this is the case we could see an attempt to oust Theresa May by the Labour Party. This would no doubt cause further pound weakness. Another scenario is the deal not being voted through and there will be amendments made before going to a second vote.
GBP to CAD forecast
I am afraid there is very little reason to be positive about Sterling at present and I believe we could be set for further losses against the Canadian Dollar.
Alberta set to cut Oil production
Alberta’s regional Government have announced this week that it will require local oil companies to reduce oil production by 8.7 % during 2019, the equivalent to 325,000 barrels a day. This is a clear attempt to bring up the value of crude oil, one of Canada’s largest exports. The heavy reliance on oil means that oil price has a bearing over Canadian Dollar value. This decision could also undermine the Bank of Canada’s (BoC) outlook and cause Canadian dollar weakness.
Bank of Canada Interest Rate Decision
On Wednesday we will witness the BoC’s interest rate decision. I would be surprised to see any change from the current 1.75%. The BoC rate statement could be of interest however.This is often an opportunity for BoC embers to give investors a introspective on to their thoughts on monetary policy moving forward. This does have the power to influence the markets so keep an eye on events as they unfold.
I believe the Brexit situation will outweigh any oil related troubles from Canada so if you have to move short term it may be wise to take advantage of current levels.
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