Pound Canadian Dollar (GBP/CAD) Exchange Rate Flat as MPs Back Cooper’s Bill
The Pound Sterling Canadian Dollar (GBP/CAD) exchange rate remains muted and the pairing is currently trading at an inter-bank rate of CA$1.7566.
On Wednesday evening the House of Commons voted by a majority of one to pass a Bill that forces the Prime Minister to request an extension of the Brexit process.
Labour’s Yvette Cooper’s draft legislation would force Theresa May to request an extension of Article 50 beyond the current deadline of 12 April.
The Bill also gives Parliament the power to decide the length of the extension May is to request, which likely provided Sterling with an upswing of support.
This morning a motion has been tabled in the House of Lords for the Bill to be rushed through this chamber in a single day, meaning it could become law by the end of Thursday.
Speaking to MPs, Brexit Secretary Stephen Barclay said he hopes the Lords would ‘scrutinise this bill passed in haste with its constitutional flaws.’
Dip in Crude Oil Weighs on the Canadian Dollar (CAD)
The price of oil, one of Canada’s major exports slipped on Wednesday following data from the US government which showed a surprise build in crude inventories.
US crude oil settled 0.2% lower at $62.46 a barrel which likely weighed on the Canadian Dollar (CAD).
Meanwhile the oil-sensitive ‘Loonie’ was provided with a boost as global risk appetite rose following reports that the US and China were making progress during trade negotiations.
Reports also suggested that US President Donald Trump and Chinese Vice Premier Liu He are scheduled to meet at the White House on Thursday.
This sparked further speculation that the negotiations between the US and China are entering the final stages.
Pound Canadian Dollar Outlook: Will the GBP/CAD Exchange Rate Slump on Improved Canadian Business Conditions?
The Pound (GBP) could rise against the Canadian Dollar (CAD) later today as talks between the Prime Minister and Labour leader, Jeremy Corbyn are set to continue.
It is likely markets will be watching closely for signs that these cross-party talks are making the progress needed to end the current Brexit deadlock.
If talks are successful it could provide Sterling with an upswing of support.
Later this afternoon, the ‘Loonie’ could rise following the release of March’s Ivey Purchasing Managers Index.
If this index rises from 50.6 to 51.1 showing that Canadian business conditions are improving, the Pound Canadian Dollar (GBP/CAD) exchange rate could slump.