GBP/CAD Exchange Rate Sinks as May’s Leadership is Challenged
UPDATE: The Pound Canadian Dollar exchange rate sank following a series of leadership challenges against Theresa May, following her meeting with the 1922 Committee today in which she was urged to provide her departure date – whether she wins the parliamentary vote on her deal or not.
Following this announcement the former Foreign Secretary, Boris Johnson, announced that he would be willing to stand for leadership, further putting pressure on Mrs May’s position.
Sterling traders have, however, remained jittery over fears of a no-deal Brexit, as cross-party talks are showing no signs of progress.
The Canadian Dollar, meanwhile, has been put under strain from increasing global trade concerns, following US President Donald Trump’s affront to China by declaring a national emergency over the Chinese telecom Huawei, which, says Trump, may provide a threat to US national security.
GBP/CAD Exchange Rate Sinks as Brexit Uncertainty Returns ahead of June Vote
UPDATE: The Pound Canadian Dollar (GBP/CAD) exchange rate sank further following the Labour Party’s refusal to abstain from a second reading of the Brexit withdrawal agreement, throwing Prime Minister Theresa May a much-needed life line ahead of June’s vote.
The ongoing US-China trade war is escalating as China is increasingly under pressure to boost its economy.
Katrina Ell, an Economist at Moody’s Analytics, commented:
‘The need for further stimulus is amplified by the trade war escalating last week. The task before Beijing to stabilize domestic demand amidst slower global growth and a festering trade war is not easy.’
The Canadian economy, which is particularly sensitive to global tensions due to its reliance on selling commodities, is being weighed down by heightened tensions between the US and China.
GBP/CAD Exchange Rate Edges Higher as Canadian Traders Await CPI Figures
The Pound Canadian Dollar (GBP/CAD) exchange rate edged higher today and is currently trading around CA$1.7398.
The Canadian Dollar (CAD) has remained weakened against the Pound (GBP) as the US-China trade war continues to threaten the Canadian economy which relies heavily on global trade.
Sal Guatieri, a Senior Economist at the Bank of Montreal, commented:
‘The U.S. economy catches a cold, we get a fever.’
Many ‘Loonie’ traders, however, are remaining hopeful that the Bank of Canada’s (BoC) CPI figures for April will rise against March’s 1.6%, with a forecast of a 1.8% being the consensus.
However, with US-China trade concerns remaining in focus, any indications of a flare-up between the two superpowers could have a knock-on effect on the Canadian economy.
The Pound (GBP), meanwhile, has been buoyed by Prime Minister Theresa May’s reassurance that another Brexit vote will go ahead in June, despite the lack of a cross-party consensus on the withdrawal agreement.
GBP/CAD Exchange Rate Climbs despite May’s Brexit Vote Promise
Sterling (GBP) is, however, failing to make further gains as a number of MPs insist that they will vote down Theresa May’s Brexit deal next month, dampening in convince in a breakthrough for the UK’s political stalemate.
Nigel Dodds, the Westminster leader of the DUP, commented that it was ‘highly likely’ that May’s deal would fail to gain a parliamentary majority.
‘The prime minister has not pursued the one option that has ever achieved a positive vote for something in parliament. Alternative arrangements to the backstop won easily while everything else has failed.’
With increasing doubts surrounding May’s Brexit deal, this is continuing to weigh on market sentiment in the Sterling as Brexit uncertainty is set to return ahead of June’s important parliamentary vote.
GBP/CAD Outlook: Cross-Party Brexit Talks to Remain in Focus
Canadian Dollar (CAD) traders are looking ahead to tomorrow’s speech from the BoC’s Governor, Stephen Poloz, and with any signs of bullishness about the economy could buoy market confidence in the ‘Loonie’.
Tomorrow will also see the publication of the Canadian manufacturing shipments figures for March, which are expected to improve.
Pound (GBP) investors, meanwhile, will be awaiting the Bank of England’s member of the Monetary Policy Committee, Jonathan Haskel, who is due to deliver a speech tomorrow.
The GBP/CAD exchange rate is likely to be driven by Brexit developments over the next few days, and with diminishing hopes of a compromise emerging from cross-party talks, this could begin to weigh on the pairing.