Sterling is coming under increased pressure against a number of major currency pairs with the Canadian dollar being one of the stand out currency pairs. We have previously touched on the fact that CAD is the strongest performer of the G10 so far in 2019, and with the pound having quite a torrid time over the past month and a half the GBP/CAD pair have been in free-fall which has left Canadian Dollar sellers in a great position.
Jeremy Hunt gaining momentum in Tory leadership contest: How could Pound to Canadian dollar rates be impacted?
One of the reasons for the pound’s weakness can be put down to political uncertainty, and there’s a chance that this could continue as the new leader of the Conservative Party, and therefore the new Prime Minister isn’t likely to be announced until later on in July.
Although the favourite to become PM is Boris Johnson, his opponent Jeremy Hunt appears to be gaining some momentum and this week he has outlined plans to pursue a no-deal Brexit if there isn’t a deal with the EU in place by the 30th of September. Although previously being against a no-deal, this kind of update could sway some of the Brexiteer leaning Conservative Party members to vote in favour of him so until the new leader is announced we could see this matter impact sterling exchange rates.
Bank of England speech: Mark Carney expected to remain dovish
Later today there will be a speech from the Bank of England governor Mark Carney. He tends to adopt a dovish tone which can soften the pound’s value so those watching the pound’s value should be aware of this. Do feel free to register your interest with me if you wish to be updated if there are any major market movements.
Tomorrow at 9.30am there will be Services PMI figures and this release could also impact GBP exchange rates due to the importance of the services sector to the UK economy.
If you would like to learn more about current factors affecting GBP/CAD exchange rates or have an upcoming currency transfer, feel free to contact me directly using the form below. I look forward to hearing from you.