The pound has started to fall a little against the Canadian dollar after a very strong run recently. GBPCAD exchange rates have started to retract as the suggestion of a 3 month extension to Brexit has done little to impress investors in sterling.
Earlier this week the House of Commons rejected Theresa May’s Brexit deal once again but did win with a majority to ask the European Union to extend the Brexit deadline until the end of June.
This week we have seen a lot of movement for sterling exchange rates across the board with the main influence being that of Brexit and whilst this remains unresolved the market is uncertain.
Therefore, if you have a currency transfer to make in the near future and you’re comfortable with where exchange rates are at the moment it could be worth considering your position.
Next week the Prime Minister will once again attempt to win the backing of MPs for a deal and even if she wins, which I think is highly unlikely, the PM will need to ask the European Union for an extension in order to complete the necessary legislation to leave the EU.
Once potential sticking point is that any extension to Article 50 will need to be agreed by all the other countries involved. I think this is simply a formality but we are still relying on them all to agree the terms.
Meanwhile, turning the focus back towards the Canadian dollar, this currency has started to fight back after an increase in oil prices and the stock market also going in an upwards direction.
The Canadian dollar has also improved after US Trade Representative Robert Lighthizer suggested that the US is working towards plans to remove tariffs on Canadian steel and aluminium.
Overall, Brexit is likely to remain the major influence upon sterling against the Canadian dollar so make sure you’re well prepared for what could happen.
If you would like further information about what is happening with global politics and the impact on the Canadian Dollar feel free to use the form below to get in touch. I’ll be happy to respond personally and discuss your requirements.