The Pound has slipped against the Canadian Dollar today and could make greater losses in the future when the UK clarifies its position on Brexit.
Further Pound to Canadian Dollar Decline Forecast on Brexit Details
At the start of the current week, the Pound has posted a marginal loss against the Canadian Dollar. This comes ahead of a key government announcement on the situation after Brexit.
With both UK and EU officials criticising the government for its lack of clarity on Brexit issues, papers are due to be published this week to clear up matters.
Explaining the timing on the publication, Brexit Secretary David Davis said;
‘I’ve launched this process because with time of the essence [and] we need to get on with negotiating the bigger issues around our future partnership to ensure we get a deal that delivers a strong UK and a strong EU’.
Davis has added that;
‘It’s what businesses across Europe have called on both sides to do and will demonstrate that the UK is ready for the job…[this is] an important next step [in] getting on with the task set to us by the British public’.
Given that the topics covered could include Northern Ireland, free trade or lack-thereof and a possible divorce payment, the chances are high for Pound-turbulence on the news.
NAFTA Talks may Unsettle CAD Traders
For the Canadian Dollar, trade talks with the US are a possible source of near-term volatility.
Ever since Donald Trump took office in January, fears have been that Trump could tear up the US’s involvement with the North American Free Trade Agreement (NAFTA), of which Canada and Mexico are also members.
Trump’s angle is that NAFTA has brought the loss of US jobs and a widening trade deficit, but defenders argue that the deal has made the US a wealthier nation.
In the words of the US Trade Representative, the objective is that;
‘Through the renegotiation of NAFTA, the Trump administration will seek a much better agreement that reduces the US trade deficit and is fair for all Americans by improving market access in Canada and Mexico for US manufacturing, agriculture, and services’.
Whether this endeavour pays off remains to be seen, but any signs that Canada could be losing out may lead to a sudden Canadian Dollar decline.
Recent Interbank GBP CAD Exchange Rates
At the time of writing, the Pound to Canadian Dollar (GBP CAD) exchange rate was trading at 1.6474 and the Canadian Dollar to Pound (CAD GBP) exchange rate was trading at 0.6065.
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