The GBP/CAD rate is already a cent higher in the last 12 hours as there could be a very positive day for Sterling. The Canadian Dollar has had a major flurry of strength since the Brexit which was mostly down to sudden surge in the price of oil.
However, in the last few weeks when it became apparent that the supposed OPEC deal was not confirmed there has been some doubts. Furthermore, oil inventories had started to fall in the last few months but that figure has increased in the last few days. The plummets in the price of a barrel this year have come from the high stock levels and the attitude of many nations to just keep pumping to flood the market.
Brexit legal challenge successful
The high court has ruled today that Article 50 cannot be legally implemented before the decision goes through the House of Commons. This has essentially caused a jump for Sterling as many people believe the UK could get a better deal. However, it’s quite clear from previous discussions that a majority of MP’s were against a Brexit and this could scupper the chances of a quick leave. The UK Parliament will now have to meet and whilst it may not hold a vote so to speak there will be an opportunity for opinions to be shared.
The financial markets have relished in the news that there could be a legal barrier between the UK and Brexit hence the market movements. There could be more good news this afternoon for Sterling as Mark Carney will discuss the UK’s monetary policy outlook. It seems unlikely there will be any mention of the high court challenge, but Carney warned against the dangers of a Brexit and if there is reason for optimism he could certainly help Sterling