GBP to CAD forecast: Pressure continues to mount on May

Brexit continues to dominate GBP/CAD value

The preliminary Brexit deal agreed with Brussels has come under heavy criticism and several high profile resignations has caused investors to lose further confidence in the pound.

Chief Brexit Negotiator, Dominic Rabb was the most influential resignation which was a huge blow to Theresa May and Jacob Rees-Mogg has now called for a vote of no confidence.

Due to the resignations and the many different contenders for May’s position the odds seem stacked against the pound.

GBP to CAD forecast

The GBP to CAD exchange rate currently sits at 1.69, but I feel there is potential for further losses from Sterling.

Brexiteers, Mordaunt, Fox, Grayling are due to meet this morning in an attempt to draw up a new Brexit plan to rival the PM’s. Details of the plan and the level of support it receives is sure to create volatility on the for GBP/CAD exchange rates.

If a vote of no confidence fails to materialise, I would expect only small gains for the Pound as Theresa May still has the hard task of getting her deal through Parliament which at present seems unlikely. If however the back bench 1922 committee receives the 48 letters from MPs to trigger a leadership challenge we can expect a significant fall in Sterling value.

Steve Baker, a former Brexit minister stated that he is confident over 50 MPs have indeed submitted their letters.

Canadian Retail Sales and CPI Data could create volatility

On Friday we will see the release of Canadian Retail Sales data and there is predicted to be a move from last month’s – 0.4% to 0.2%, this could cause Canadian Dollar strength. Following this we will witness the release of Canadian Consumer Price (CPI) data. CPI is a key measure of inflation and can influence interest rate decisions so could move the GBP to CAD rate.

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