Pound to Canadian Dollar exchange rate climbs
Over the past month the Pound has been one of the best performing major currencies, and this has seen the Pound to Canadian Dollar exchange rate climb as high as the 1.63’s at its highest stage after trading as low as 1.5876 just 1 month ago.
This time last month the Pound to Canadian Dollar exchange rate hit its lowest level of the year after UK Prime Minister Boris Johnson outlined his plans to take the UK out of the European Union when the current extension period elapses on the 31st of October. His plans appear to have been scuppered over the past few weeks though with the Prime Minister losing as many as 6 votes within Parliament. Although it’s yet to be confirmed it looks like there will be another extension to Brexit, at least that’s what the markets have taken from recent events and this has been reflected within the Pound’s value as Sterling has climbed against all major currency pairs.
What could effect the Pound?
There are a couple of issues that could limit the Pounds gains though. Usually in times of political uncertainty there can be downside risks for the underlying currency, and if there is another general election as Boris Johnson is trying to call, the Pound could be negatively impacted.
At the same time the Canadian Dollar is currently benefiting from the boost in oil prices, as they have hit the highest level in 6 weeks over the past few days and this usually has a strengthening effect on the Canadian Dollar due to the commodity being a key export for the economy.
Economic data out of the UK is very light for the rest of the week, so we would expect Brexit updates to remain the key driver for GBP exchange rates.
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