Brexit continues to drive GBP/CAD rates with just 24 days until Brexit deadline
The pound to Canadian dollar exchange rate is still struggling to move back to the higher levels seen in the last month with rates currently sitting at 1.639 for the GBP vs CAD pair. Brexit continues to be the big driver for GBP to CAD exchange rates with just 24 days to go until the 31st October Brexit deadline when Britain is expected to leave the European Union. It has been reported this morning that French President Emanuel Macron is giving until this Friday to confirm whether or not a deal can be reached. View our Brexit timeline here.
Brexit extension or no deal?
The British government has asked for compromise from the EU having given new proposals which offer a compromise from the British side. Although there has been much attempt to try and force the government to ask for an extension to departure via the Benn Act or what the Prime Minister refers to as the “Surrender Act”, the government is holding firm on its policy that the UK will depart with a deal or without a deal on the 31st October. A court hearing in Scotland will continue to be heard this week which seeks to request from the court a mechanism that will ensure the Prime Minister will delay departure. Any developments expected in the coming days will likely impact on GBP/CAD exchange rates.
Pound to Canadian Dollar volatility expected in run up to Article 50 deadline
A period of volatility is expected as we reach this crucial juncture when it is almost impossible to predict how Brexit will play out. Will there be a concession offered from Ireland on the controversial backstop or will Britain find a way around the Benn Act to leave without a deal? Both of these outcomes of course would take out the need for requesting that extension and both would carry very different directions of travel for the GBP/CAD pairing.
Those with pending requirements to either buy or sell Canadian dollars would be wise to make contact to be informed of all the latest developments. Any big changes or shifts on policy from the UK or EU side are likely to have a profound impact on the currency pairing. Three years ago, after the 23rd June EU referendum the pound crashed heavily after the result and sterling has never been able to recover since. If you would like to learn more on GBP/CAD influences or have an upcoming currency transfer and would like to save money when compared to you high street bank, feel free to contact our currency specialists using the form below.