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You are here: Home / Canadian Dollar / GBPCAD falls on Brexit uncertainty and higher oil prices

GBPCAD falls on Brexit uncertainty and higher oil prices

October 4, 2016 by Rob Lloyd

GBPCAD falls on Brexit uncertainty and higher oil prices
  • GBPCAD falls on Brexit fears and oil price increase
  • Exchange rates down 2.5 cents since the weekend
  • Further falls likely with Brexit uncertainty the main driver

Canadian dollarSterling to Canadian Dollar exchange rates have taken a hit since the weekend. Theresa May’s announcement regarding the timing of Article 50 has resulted in Sterling weakness and fresh uncertainty for the UK. Much of the weakness is likely due to a lack of Brexit plans and thus a drop off in investment.

Theresa May remains vague about her plans for the UK which has raised questions for those working and operating within the financial sector.

GBPCAD is now trending near its lows since the Brexit vote.

Oil prices increase on OPEC agreements

The uptake in oil prices has recently been fuelled by the recent OPEC meeting with many of its member agreeing on a production limit. Whilst this has positive implications for CAD investors remain sceptical given the inability to arrange a production freeze in the past.

Saudi Arabia are unlikely to stick to any agreement if rival Iran doesn’t, and Russia’s last agreement with OPEC back in 2001 never actually materialised.

Whilst oil prices have rebounded in the last week I am not expecting this rebound to last. GBPCAD will likely continue to fall due to Brexit uncertainty as we approach 2017.

Economic data on Friday could cause CAD volatility

Friday’s unemployment rate and Ivey PMI could cause CAD weakness, with the recent fall in oil prices business conditions may have taken a hit. However if you do need to buy CAD in the very near future I would do so sooner rather than later as the general devaluation of the Pound as a result of Brexit will likely be the main cause of further downfalls.

Filed Under: Canadian Dollar Tagged With: GBPCAD, Oil prices, OPEC

The information on this website is provided for information purposes only. It does not constitute advice to any person on any matter. Every reasonable effort is made to ensure that the information is accurate and complete but we assume no responsibility for and offer no warranty with regard to the same.

About Rob Lloyd

Robert brings with him a wealth of knowledge on what is impacting exchange rates, especially around the subject of the EU Referendum and the implications for Sterling and Euro exchange rates.

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