Could Brexit developments and the Canadian Interest Rate Decision cause movement for GBP/CAD?

Could Brexit developments and the Canadian Interest Rate Decision cause movement for GBPCAD later today?

It’s been a busy week of political updates out of the UK so far, with sterling exchange rates beginning the day in strong fashion this morning after the most recent Brexit development.

Brexit uncertainty as Boris Johnson is defeated in Parliament vote

Boris Johnson has now been Prime Minister for 6-weeks and his plans to carry out Brexit by the 31st of October are already looking difficult as members of the House of Commons continue to vote against a No-deal Brexit being a lawfully viable option. Last night they voted 328 to 301 to take control of the parliamentary plans, and it looks like they intend to delay Brexit until the 31st of January.

Pound climbs against the Canadian Dollar

Sterling has climbed as a result of this development after being on the receiving end of a volatile day of trading yesterday. At one stage yesterday the pound hit a 3-year low against the US dollar which hit the financial headlines, so this morning’s positive move for the pound will appease sterling bulls for now.

How could a general election effect GBP/CAD exchange rates?

There is talk of a general election being called by Boris Johnson in order to try and take back control of the government which would allow him to move forward with the UK’s departure from the EU. Usually general elections can create political uncertainty which tends to have a negative impact on the underlying currency so those of our readers following the pounds value should monitor these developments in case. Do feel free to register your interest with us if you wish to be kept updated regarding this.

There are a number of data releases out of Canada today that could be worth monitoring. Import and Export data for July will be released this afternoon and then the Bank of Canada’s interest rate decision will be announced afterwards. The current interest rate sits at 1.75% so although no changes are expected it’s worth following in case any key updates are announced afterwards, or a shock decision is made.

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