The pound has fallen against the Canadian dollar today after a good rally for GBP to CAD rates for much of the week. There has been major volatility for GBP to CAD this week on the back of all the latest Brexit developments. UK Prime Minister Theresa May saw a historic defeat in the House of Commons on Tuesday which saw her lose by 230 votes. The government then survived a vote of no confidence the following day which was put forward by the leader of the Labour party.
Theresa May will make a statement on Monday where she will outline the next steps and in the meantime she is seeking cross party support to look for ways to try and find a majority in the House of Commons. Any clues offered as to where Brexit will move next will likely have a considerable impact on GBP to CAD rates. The next important date is Tuesday 29th January when politicians will vote on the second plan and this could present a volatile period if amendments are put forward by MPs to try and alter the course of Brexit or even stop it from happening.
Canadian inflation could affect GBP to CAD rates
Rates for GBP to CAD peaked this morning at 1.7243 before retreating lower. Canadian Consumer Price Index inflation data is released this afternoon and could help direct the Bank of Canada in its monetary policy. The central bank are trying to follow in the US’ footsteps and more interest rate increases are to be expected. This is likely to prove positive for the Canadian dollar as investment moves back to Canada with higher interest rates.
The price of oil which has seen considerable fluctuation will also have its part to play in these coming weeks. Another reason why the Canadian dollar has weakened this week is because the price of oil has been falling which is generally seen as negative for the Loonie. Support for the Canadian dollar may now be around the corner though as investors begin to feel more confident that there will be an end to the trade war between the US and China.
For more information on Canadian dollar exchange rates and for assistance making transfers at the best rates of exchange then please feel free to contact me James using the form below: