GBP/CAD rate remains around 6 month high as markets prepare for Brexit Plan B votes

Pound to Canadian dollar rates fall lower as Brexit intensifies

Sterling exchange rates performed well last week and hit monthly highs against a number of major currency pairs towards the end of the week. The GBP/CAD rate has hit its highest level since July of 2018, as the path for Brexit is looking clearer now.

By clearer, I mean the next steps are looking more certain as the arrangement between UK Prime Minister, Theresa May and her EU counterparts has failed to make its way through Westminster. The European Union has remained firm in their stance that there is no scope for amendments to the deal, and now that cross party negotiations within the UK have stalled it’s looking like the only option remaining for Brexit would be to extend the time-frame for the UK to leave the EU.

Financial markets have reacted well to this news, as they have throughout the past two and a half years whenever talk of a softer Brexit has taken place.

This week the main talking point is likely to be tomorrow evening’s Plan B vote on Theresa May’s Brexit plans. The plan is amendable, and a number of amendments have been tabled already with the speaker set to select some of the motions to be voted on tomorrow evening. The votes will take place around 7pm so feel free to get in touch with us if you wish to plan around the votes in case of a major market movement.

Economic data is light during the beginning of the week so I expect the vote to be the main driver for the GBP/CAD rate from the UK side. The US Government shutdown has come to a temporary end for at least three weeks after US President, Donald Trump signed a temporary stop-gap funding measure. This is likely to benefit the Canadian dollar as a slowdown in the US economy is likely to negatively impact the Loonie. The recovery in the value of oil is also helping prop up CAD exchange rates after a dramatic sell-off towards the end of last year.

If you wish to be updated in the event of a movement in the GBP/CAD rate, or would like to discuss a Pound to Canadian dollar exchange, please do feel free to contact me directly using the form below.