The pound is continuing to hold onto the recent gains made this month, as the pound to Canadian dollar continues to trade around the 1.67 – 1.68 level.
Brexit extension granted by EU
Donald Tusk announced at 9.30am this morning that EU leaders have agreed to extend the Brexit departure date until the 31st of January, with markets relatively unchanged as this was the general expectation despite some strong words from French President Emmanuel Macron who had alluded to blocking the 3-month Flextension as it’s being labeled.
The next key Brexit development could now surround the push for a general election from Prime Minister Boris Johnson who has had to request the Brexit extension begrudgingly after previously stating that he wouldn’t. He has been applying pressure to his political opponents regarding the election, but so far Labour leader Jeremy Corbyn has refused to agree and he has stated that he won’t until a no-deal Brexit is taken off the cards.
The deadline date is for the 31st of January, but the agreement is said to be flexible and the UK could depart the EU prior to that cut off date.
Bank of Canada interest rate decision
From the Canadian side of things there could be movement for CAD exchange rates this week as the Bank of Canada will be announcing its Interest Rate Decision this week on Wednesday at around 3pm. The current interest rate is 1.75% so any changes, or allusions to potential changes in future could impact CAD exchange rates so it’s worth being aware of this if you’re planning on making a transfer shortly.
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