Brexit continues to dominate the Pound vs Canadian Dollar rate

Brexit continues to dominate the Pound vs Canadian Dollar rate

Yesterday afternoon MPs in the UK were told that they would not be allowed to have their usual break in February owing to the current problems surrounding the Brexit negotiations.

Many MPs were rather disappointed about missing their usual time off, but with Brexit now less than two months away as well as just two weeks before Theresa May is set to address MPs again the move is clearly extremely important.

After approving the amendment about the Irish backstop, Theresa May will have a very difficult job ahead of her convincing those on the continent to change their minds about the current arrangement, but according to Michel Barnier and other Europeans the deal will not be re-negotiated.

Therefore, it could be argued that anything Theresa May tries to do in the next fortnight will be futile and she may have to return to the House of Commons with little change to the plan which was heavily rejected by a majority of 230 in January.

The impact this has on the Pound is that the fear of a no deal Brexit increases every day that it goes on and with now less than two months to go before the UK is due to leave the European Union time is slowly running out.

I personally cannot see a no deal Brexit happening, but unless a deal gets arranged in the near future the only other alternative would be to extend Article 50, which could potentially give the Pound the support it is desperately looking for.

Canadian Dollar strength as oil price increases

In the meantime the Canadian Dollar has been performing rather well as the price of oil has started to increase again recently. Although the Canadian economy has contracted recently the country since managed to maintain its strong position in first place of the G10 nations which may suggest that Canada is the best of a bad bunch at the moment.

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