We’re now less than 3 weeks away from the UK’s expected departure date from the European Union, with this week being arguably one of the most important regarding the Brexit plan, as many following the news will be aware.
Despite calls for UK Prime Minister Theresa May to once again postpone the meaningful vote on her Brexit deal, the vote is still expected to take place tomorrow evening and although Mrs May isn’t expected to lose by such a substantial margin this time, analysts are predicting a loss by roughly 100 (last time she lost the vote by a record 230).
How will Brexit vote affect GBP to CAD rates?
The general consensus is that the Pound will spike upward in value if her deal is voted in favour of, and I don’t think anything can be taken for granted owing to the short amount of time remaining until the UK is expected to leave the European Union. If May’s deal is voted against once again, there will be a vote regarding a no-deal Brexit on the following day which will determine whether or not MPs will accept a no-deal. If no-deal is voted against then there will be another vote regarding an extension to Article 50 to allow for further negotiations and some market commentators expect to see a drop in the Pound’s value should this be the path taken by MPs.
Last week the GBP/CAD exchange rate hit the highest level since April of last year, trading as high as the 1.77’s at the highest stage although the boost for the Pound has since eased off with GBP/CAD testing the 1.73’s at the lowest stage today.
GBP to CAD forecast: News from Canada
Owing to UK politics we could see some major moves for GBP exchange rates across the board of major currency pairs, and there are also a number of issues impacting CAD at the moment too. The Bank of Canada recently adopted a bearish stance regarding monetary policy changes, and the Canadian Prime Minister, Justin Trudeau is currently under pressure and losing support according to polls due to a political scandal involving a Canadian engineering company at the moment.
If you would like to be updated if there are any major market moves this week, or would like to discuss anything you have read in my GBP to CAD forecast, please feel free to get in touch with me using the form below: