Sterling drops as pressure on May builds and Brexit negotiations stall

Sterling drops as pressure on May builds and Brexit negotiations stall

Pound to Canadian dollar rates have continued to drop this morning, after seeing a sell-off yesterday afternoon as fears surrounding the progress of Brexit negotiations build.

Brexit cross-party talks

Rumours within the financial press suggest that UK Prime Minister Theresa May is under pressure to announce the date in which she intends to step down, and she is apparently due to meet Graham Brady today. Graham Brady is the chairman of the 1922 Committee, which is an influential committee that represents members of parliament from her Conservative Party.

There have been cross-party talks between leaders of May’s Conservative Party along with leaders of the Labour party, in order to try and agree on the terms of Brexit which would allow for a deal to be in place so the UK can leave the EU. Rumours suggest that a number of MP’s are unhappy at the amount of progress made so far, and as May’s position is questioned once again we’re seeing a sell-off in the Pound’s value with Sterling losing over 1% since Friday last week.

Pound to Canadian dollar forecast

The pound’s weakness is so far overpowering the weakness seen in the Loonie this week, but it’s worth noting for those of our readers planning on making a currency exchange involving the GBP/CAD pair that CAD is also under pressure at the moment. The trade war talks between the US and China have picked up this week, with US President Donald Trump threatening to implement a number of additional trade tariffs on China over the past weekend. Chinese stock markets have dropped off dramatically and fears surrounding the global economy have increased which has pushed CAD to its lowest level against the US in the past 10-days.

Friday could be a busy day for economic updates, as data will be released out of the UK at 9.30am in the form of GDP figures. Then in the afternoon there will be a Employment data released so if you would like to be kept updated regarding these releases, please feel free to register your interest with me.