Pound to Canadian Dollar rate: Pressure on Sterling increases as chances of a no-deal Brexit increases, will GBP/CAD continue to fall?

Pound to Canadian Dollar rate Pressure on Sterling increases as chances of a no deal Brexit increases will GBPCAD continue to fall?

Pound to Canadian Dollar exchange rate at lowest levels since September 2017

The current levels for exchanging pounds into Canadian dollars sits at a 22-month low at the time of writing, as the GBP/CAD pair haven’t traded this low since September of 2017 when sterling came under heavy selling pressure. Back then the pound lost value against most major currency pairs as UK Prime Minister at the time, Theresa May, didn’t get the support she needed to gain a majority at the General Election she called.

We’re now close to those levels again as the potential for a no-deal Brexit is increasing compared with a few months back. Boris Johnson is the frontrunner to become the next Prime Minister of the Conservative Party, and he is more open to the idea of the UK leaving the EU on the 31st of October without a deal in place than outgoing PM Theresa May has been.

Pound investors waiting on Conservative leadership contest results

Sterling has been gradually losing value recently for this reason, and this week the subject has been touched on as Boris Johnson and Jeremy Hunt have both made their final pitches towards Conservative members in the hope of being voted into power. We’re expected to know who will become PM next week as the date of the vote is scheduled for the 22nd, so this date is worth being aware of if you’re planning on making a currency exchange involving the pound.

Another reason for the weakness in the GBP/CAD rate can be attributed to the recent strength of the Canadian dollar as economic data out of the country has shown an improvement recently. Statistics Canada recently showed that Factory Sales in Canada rose by their greatest margin in a year during May, and inflation pressures have also eased recently aiding the Loonies value. If you would like to be kept up to date with GBP/CAD currency news, feel free to contact me directly using the form below.