The Pound Canadian Dollar (GBP CAD) exchange rate retreated at the start of trading this morning as recent opinion polls cast further uncertainty over the Brexit process.
Polls over the last couple of days have showed that Prime Minister Theresa May’s lead has narrowed greatly since the release of the Tory manifesto last week, with its lead over Labour falling into single digits for the first time since the general election was called in April, according to a YouGov survey in the Sunday Times.
May appears to have alienated a large number of potential voters in her manifesto, which included the scrapping of the triple-lock on the state pension and the requirement that elderly people living at home must pay for their own care if they hold assets worth over £100,000, in what critics are labelling a ‘dementia tax’.
Labour, meanwhile, has made solid gains after Jeremy Corbyn vowed to eliminate student fees and pledged to renationalise the railways.
The situation has caused GBP CAD to weaken as markets fear that it could frustrate the Brexit process even further if the Conservatives do not win a sizeable majority.
Meanwhile, the Canadian Dollar was strengthened today as oil prices continued climbing this week over speculation that members of OPEC will agree to extend production cuts until the end of the year.
OPEC members and other major oil producers such as Russia will meet in Vienna on Thursday to discuss the possibility of extending the agreement to cut output by 1.8million barrels a day, which is currently set to end in June.
Analysts are in near-unanimous agreement that the group will move forward with further cuts this year, with the main questions now being how-long they will be extended to and whether the cuts will be larger, with Saudi Arabia reportedly pushing to raise cuts above 2million barrels a day as it is frustrated by the lack of impact current measures have had on the global surplus.
Looking ahead, the GBP CAD exchange rate may tumble again on Tuesday as the UK’s Public Sector Borrowing figures are forecast to show that the public deficit grew from -£4.36bn to -£8.15bn in April.
Meanwhile the Canadian Dollar may stumble on Wednesday as the Bank of Canada (BoC) gathers for its latest monetary policy meeting, with economists predicting that the Bank will vote to leave interest rates unchanged.
Current Interbank Exchange Rates
At the time of writing the GBP CAD exchange rate was trending around 1.7562 and the CAD GBP exchange rate was trending around 0.5687.
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