Pound Sterling Canadian Dollar (GBP/CAD) Exchange Rate Shoots up as UK-EU Brexit Consensus Agreed in Principle
The Pound Sterling Canadian Dollar (GBP/CAD) exchange rate has shot up today and is currently trading at CA$1.70 after the UK and EU agreed a draft declaration deal over Brexit.
Sterling was muted yesterday against the Canadian Dollar as UK Prime Minister Theresa May headed to Brussels to smooth UK-EU tensions and work towards finalising her Brexit deal.
The Canadian Dollar (CAD) meanwhile found itself held back despite stabilising crude oil prices as yesterday’s release of September’s Canadian Wholesale Trade Sales dropped by -0.5%.
GBP/CAD Exchange Rate Strengthens on Agreement News
GBP/CAD remains driven by Brexit news, with Theresa May showing increasing confidence in her EU Brexit draft
As meetings with the European Commission President Jean-Claude Juncker are continuing on Saturday ahead of Sunday’s emergency EU summit, this may provide Sterling with a boost against the ‘Loonie’ if talks go well.
Theresa May said:
‘I now plan to return for further meetings, including with President Juncker on Saturday to discuss how we can bring to a conclusion this process and bring it to a conclusion in the interests of all our people.’
As May shows continuing optimism, with the agreement over the Brexit deal declaration over EU-UK future ties, Pound Sterling looks to hold steady.
This comes despite yesterday’s ballooning UK public sector borrowing figures for October, which were the highest in three years at £8.8bn.
GBP/CAD: Brexit in Driving Seat as EU Summit Remains Crucial for May’s Deal
GBP/CAD movement will likely be dictated by Brexit developments over the weekend, with Sterling potentially getting a boost in sentiment if a Brexit deal is rubber stamped at Sunday’s EU summit.
European Council President Donald Tusk said today:
‘The Commission president has informed me that it has been agreed at negotiators’ level and agreed in principle at political level, subject to the endorsement of the leaders.’
Pound Canadian Dollar (CAD/GBP) Outlook: RPI Figures in Focus
GBP/CAD may fluctuate tomorrow, with Canada’s Retail Price Index (RPI) figures for October due to be released by Statistics Canada.
Although expectations are bearish, any surprise spike in inflation could see the Canadian Dollar (CAD) gain on anticipation of a rate increase from the Bank of Canada.
September’s Canadian retail sales are also due out tomorrow, with the expectation of minor gains signalling a potential boost in consumer confidence which could lend further support to the ‘Loonie’.
Other than these datasets, the Pound Canadian Dollar (GBP/CAD) exchange rate is likely to be driven by Brexit related headline going into the end of this week’s session, with markets eager to know the outcome of Sunday’s Brexit summit before they make their next move.