Pound Canadian Dollar (GBP/CAD) Exchange Rate Falls as Andrea Leadsom Resigns
The Pound Sterling Canadian Dollar (GBP/CAD) exchange rate fell and the pairing is currently trading at an inter-bank rate of CA$1.6983.
Sterling was battered once again by Brexit pessimism as pressure mounted against Prime Minister Theresa May to name the date of her resignation.
The Leader of the House, Andrea Leadsom resigned on Wednesday evening over Theresa May’s Brexit policy.
Speaking to reporters, Leadsom said the new Brexit Bill had ‘elements I cannot support, that aren’t Brexit.’
Reports suggest that today may see the resignations of further Cabinet Ministers as they attempt to leave the sinking ship.
Meanwhile, members of the Conservative 1922 Committee held a secret ballot on whether to change the rules on a vote of no-confidence.
If party rules are changed, it would allow the Prime Minister to face a vote of no-confidence immediately.
Canadian Dollar (CAD) Rises as Retail Sales Hit 10-Month High
March’s Canadian retail sales posted the largest gain in 10 months which likely buoyed the Canadian Dollar against Sterling.
Statistics Canada showed that sales rose 1.1%, and excluding automobiles sales jumped by a higher-than-forecast 1.7%.
This came after an upwardly revised increase of 1% in February, and these two monthly advances come after three consecutive months of declines.
However, car and auto part sales slumped by around 0.7% and the decline was even larger in terms of volume.
Sterling (GBP) Slides as UK Inflation Passes BoE’s Target
On Wednesday morning data revealed that UK inflation had not risen as high as the Bank of England (BoE) forecast.
The Consumer Price Index (CPI) rose at an annualised rate of 2.1% in April, above the BoE’s 2% target.
The Office for National Statistics (ONS) revealed that the largest driver of inflation was electricity and gas prices.
This was the highest level of inflation this year, however core inflation held steady for a third consecutive month at 1.8%.
Pound Canadian Dollar Outlook: Will CAD Slide if US Slaps Further Sanctions on Chinese Companies?
Looking ahead to Friday, the Pound (GBP) could slide against the Canadian Dollar (CAD) following the release of the UK retail sales.
If retail sales slide further than forecast in April, it could dampen sentiment in Sterling.
Meanwhile, it is likely the ‘Loonie’ will slide if the US decides to slap further sanctions on Chinese companies.
If the Trump administration hits Chinese video surveillance firm Hikvision with sanctions, it could weigh on risk-appetite and the Pound Canadian Dollar (GBP/CAD) exchange rate could rise.