Pound to Canadian Dollar (GBP/CAD) Exchange Rate Remains Steady as Oil-Sensitive ‘Loonie’ is Muted
The Pound Canadian Dollar (GBP/CAD) exchange rate is steady today, currently trading at CA$1.6967, as Friday’s increase in consumer spending and inflation figures offset a 5% retreat in oil prices that presaged a one-year low, hitting the oil-sensitive CAD.
Meanwhile GBP has remained relatively static despite Prime Minister Theresa May’s securing of the EU’s agreement over her proposed withdrawal agreement.
The GBP/CAD exchange rate remains sensitive to developments surrounding Brexit, as May prepares to face Parliament in a bid to win favour for her now EU-approved withdrawal agreement.
However, MPs have criticised May’s ‘servile’ negotiation strategy, with former Foreign Secretary Boris Johnson deeming the Prime Minister’s plans to be a ‘disaster’, with the EU having the UK ‘exactly where they want us.’
GBP/CAD Dominated by Brexit Developments as May Seeks to Convince Parliament over Deal
The GBP/CAD exchange rate has remained relatively static today as Brexit developments muted the increase in mortgage approvals today.
With a five-month high for October being revealed for mortgage approvals, reaching 39,697, this showed a bullish UK housing market despite recent economic concerns.
However, this positive news was offset by the dominance of Brexit in the headlines, leading investors in Sterling to remain cautious until May’s withdrawal agreement gets over its next hurdle.
EC President, Jean-Claude Juncker, put further pressure on the UK, saying today that ‘This is the only deal possible’, further heightening fears of a possible ‘no deal’ Brexit should MPs vote against May’s withdrawal agreement.
Canadian Dollar Pound (CAD/GBP) in Stasis as General Motors Axes Oshawa Plant
The Canadian Dollar Pound (CAD/GBP) exchange rate is in a state of stasis, despite news that General Motors will be closing its plant in Oshawa, Ontario, costing up to 2,500 jobs.
The move from General Motors will have a ripple-effect on the Canadian economy, possibly denting the ‘Loonie’, MP for Oshawa Colin Carrie saying:
‘The closure of this plant will have a ripple effect like we have never seen before […] There are tens of thousands of feeder jobs that originate from this plant alone. My colleagues and I are closely monitoring the situation.’
Canada’s GDP Figures Expected to Decrease as UK Economic Stability Report Due amid Brexit Row
The GBP/CAD exchange rate will primarily be driven by political factors rather than economic ones in the coming week, with Brexit still looming large in the headlines and dampening market sentiment in Sterling.
Friday will see some important data releases for Canada, with the gross domestic product expected to decrease for the third quarter, which will likely damage investor confidence as Canada’s economic growth is forecast to drop from 2.9% to 1.9% on an annualised basis.
Wednesday will also see the publication of the UK’s Financial Stability Report from the Bank of England, which will analyse financial stability and the economy, and with Brexit looming large in the headlines this could be a cause for concern for GBP traders in the coming week.
Other than this the Pound Canadian Dollar (GBP/CAD) exchange rate is likely to remain driven by political factors over the coming days, with all eyes on the UK Houses of Parliament.