Pound Canadian Dollar (GBP/CAD) Exchange Rate Muted as Johnson Reaffirms he Would Leave EU Without a Deal
The Pound Sterling Canadian Dollar (GBP/CAD) exchange rate remained muted and the pairing is currently trading at an inter-bank rate of CA$1.6808.
On Tuesday, in an interview with the BBC, Boris Johnson revealed that he would need co-operation from the European Union.
The front-runner in the Conservative leadership contest stated that co-operation would be needed to avoid a hard Irish border and crippling trade tariffs.
Johnson also added that he did ‘not believe for a moment’ that the UK would leave the EU without a deal.
However, he stated that he was still willing to leave the bloc without a deal which likely dampened sentiment in Sterling.
Canadian Dollar (CAD) Flat as US Hits Iran with Sanctions
On Tuesday oil prices slipped over concerns over the outlook for crude oil demand.
However, prices were supported after the United States announced it would hit Iran with new sanctions as tensions in the Middle East increased.
On Monday, US President Donald Trump targeted Iranian Supreme Leader Ayatollah Ali Khamenei and other Iranian officials with sanctions.
The President revealed this was in response to Tehran shooting down a US drone and ‘many other things.’
It is likely the increased tensions weighed on the ‘Loonie’ leaving it muted against the Pound on Tuesday.
CAD Under Pressure Ahead of Trump-Xi G20 Meeting
Meanwhile, it is likely the risk-sensitive Canadian Dollar will remain under pressure ahead of this week’s meeting between US President Trump and Chinese Leader Xi.
The two leaders are expected to meet on the second day of the G20 summit in Japan.
On Monday Chinese Vice-Premier Liu He held a phone conversation with US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer.
During the call opinions on trade from the countries’ heads of state were exchanged and there was an agreement to continue communications.
Reports suggest that according to a US official, President Trump views the meeting as a chance to see where China stands.
The official also noted that the US is ‘comfortable with any outcome.’
Pound Canadian Dollar Outlook: Will a Dovish BoE Weigh on GBP?
Looking ahead to this afternoon, the Canadian Dollar (CAD) could slide against the Pound (GBP) following the release of the Canadian wholesales sales.
If April’s sales do not rise as high as forecast it could dampen sentiment in the ‘Loonie’.
Meanwhile, the pairing could slide on Wednesday morning following a speech from the Bank of England’s (BoE) Governor Mark Carney.
If Carney mentions monetary policy and he focuses on risks to Sterling it could cause the Pound Canadian Dollar (GBP/CAD) exchange rate to slide.