The following update discusses the impact the EU Referendum could have on the Canadian economy.
Canadian High Commissioner Gordon Campbell has spoken about his fears for the Canadian economy should the UK vote to leave the EU tomorrow, stating that it will not only affect one economy, but the entire worlds’ for a generation. He also raised his concerns that a Brexit could stall the implementation of the Canada-EU free trade deal which is planned for early 2017, and could affect thousands of Canadians working in British companies. Canada’s Prime Minister Justin Trudeau, along with Finance Minister, Foreign Affairs Minister and former Prime Minister are all in agreement in favour of Britain remaining part of the EU.
Crude oil prices fell by 2% yesterday which, combined with fears of a Brexit, has caused investors to move their funds out of high risk and commodity currencies. Sterling has seen a steady incline against the Canadian Dollar over the past week, rising to 1.885 yesterday morning. This is likely due to increasing confidence that the UK will remain part of the EU in tomorrow’s referendum, after some polls have shown a very slight lead for the remain camp, and bookmakers cutting their odds in favour of staying.
This afternoon at 1.30pm will show Retail Sales figures for April released, and these are expected to show an improvement from the previous month. It is likely that this data will have little impact on exchange rates while the referendum continues to take centre stage.
The remainder of this week, and the foreseeable future for that matter, are expected to be incredibly volatile. If you are looking to buy or sell Canadian Dollars in the near future, it would be sensible to keep in very close contact with your account manager here, who can keep you up to speed with the latest market movements, helping you to time your transfer for the best possible returns.
Are you worried about how the EU Referendum could impact your Canadian Dollar requirements? Speak to us today on 01494 725 353 and we will be happy to discuss your options.
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