Rising Oil prices helps the CAD capitalise on GBP weakness

The Canadian Dollar has been one of the best performing currencies in 2017 so far against the Pound, mainly due to a sharp rise in Brent Crude Oil prices since OPEC’s production cut and Theresa May’s comments earlier this week regarding Britain’s exit from the EU. Since the beginning of this month the CAD has now gained by as much as 3.5%. To put this in to monetary terms a $200,000 purchase would now cost an extra £4,000 over the space of just a few weeks and barring October last year, we are currently at the worst rates for buying Canadian Dollars since the end of 2013.

Yesterday the CAD gained further still with housing data for December and November showing vast improvements compared to previous figures. There are also house price data sets released for November tomorrow afternoon at 13:30 and if these follow suit then we could see further strength for the Loonie.

How will the Supreme Court Ruling affect GBP/CAD?

With no other data sets out for this week from Canada the ball is in the Pound’s court to determine rate movement over the next few days. The hot topic is of course the Supreme Court ruling on whether or not Parliament will be involved in Brexit negotiations, but with no clear date on when the verdict will be announced I believe the Pound is destined to struggle for the remainder of this week.

The Supreme Court will be back in office today and there have been rumours that we could have an announcement by the middle of next week, so it is vitally important through these uncertain times to keep in touch with your currency broker here at Foreign Currency Direct on 01494 725353, alternatively you can email me directly at rjh@currencies.co.uk.

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