Pound to Canadian dollar drops to a 3-month low as cross-party Brexit talks break down

Pound to Canadian dollar drops to a 3-month low as cross-party Brexit talks break down

The pound to Canadian dollar rates have seen a drop as the pound is coming under pressure against all major currency pairs at the moment, with the Brexit talks between the Conservative Party and Labour collapsing, becoming official at the end of last week.

Pound to US dollar rate tumbles

When compared with the US dollar the pound lost 2% last week which was its steepest drop since last February, making the drop the biggest in 15-months.

The fall in the pound’s value is being blamed on the markets now expecting a higher chance of a no-deal Brexit, which could take place as soon as October the 31st which is the next deadline for the UK to leave the EU. Financial markets are also cautious as there will be a 4th vote within parliament early next month on UK Prime Minister May’s Brexit deal. So far her deal has been rejected by 230, 149 and 58 votes respectively but there have been predictions that she could lose by a greater margin than the last attempt when the vote takes place early next month.

Data releases that may affect pound to Canadian dollar rates this week

Today is likely to be a quiet day for Canadian exchange rates, as it’s a bank holiday over in Canada today. Wednesday is likely to be the busiest day for Canadian exchange rates due to Retail Sales being released on that day. The figure expected is 0.4% and it will cover the month of March so feel free to get in touch if you wish to be kept updated.

Wednesday is also likely to be the busiest day for sterling exchange rates from an economic data release perspective as Retail Sales, Inflation and Public Sector Net Borrowing figures will be released.

This data is all released at 9.30am on Wednesday so feel free to get in touch before then if you wish to be kept updated.

Aside from this week’s data, I expect the political updates surrounding next months vote along with any speculation regarding PM May’s position to remain to key drivers of sterling value. If you are looking to make a currency transfer involving pounds or Canadian dollars please use the form below to contact me directly and I will respond personally. To keep track of rates visit our GBP/CAD exchange rate page.