The pound to Canadian dollar exchange rate has fallen lower over the last week as Brexit becomes the main talking point in the UK once again ahead of the European elections this Thursday.
Results of European elections to influence pound to Canadian dollar rate
The markets are already beginning to price in the prospect of a harder type of Brexit and these European elections could act to give new direction in the process. The two main political parties are expected to haemorrhage votes to other parties to include the Liberal Democrats, Change UK and the newly formed Brexit Party with Nigel Farage at the helm.
A major shift of votes towards the Brexit Party could see a sharp drop in GBP vs CAD as it would reaffirm the position that the British public do want to leave the European Union. Such an outcome would effectively see a return to the table of the no deal outcome which has always been of concern for the price of sterling. Those with pending requirements would be wise to plan around this major event in British politics, the outcome of which is likely to be watched on the world stage. Any surprises are likely to see a big market reaction for sterling exchange rates.
Trade war continues to put pressure on the Canadian dollar
The Canadian dollar could find itself under renewed pressure if the trade war between the US and China escalates further. The Canadian dollar as a commodity currency is impacted by these trade developments and is likely to see market reaction on the back a of a deal. For the moment the trade talks are in full swing after the US imposed tariffs on $300 billion worth of Chinese exports heading for the US to which China has retaliated. The recent news surrounding Huawei and the executive order from US President Donald Trump to ban the technology of “foreign adversaries.” Google has confirmed this week that it is suspending all business with the company, a sign of how far reaching the implications are of this the trade war.
For the time being the Canadian dollar has strengthened to a 3 week high against the pound presenting a better opportunity to sell Canadian dollars for pounds.
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