GBP CAD Exchange Rate Tumbles as Brexit Jitters Return

The GBP CAD exchange rate declined today as the rapid approach of Brexit caused markets to begin shying away from the Pound.

<h2>Pound Canadian Dollar (GBP CAD) Slides as Brexit Looms</h2>

The Pound Canadian Dollar (GBP CAD) exchange rate cut some of its recent gains this afternoon as concerns over the UK’s exit from the EU began to cloud Sterling sentiment once again.

With Prime Minister Theresa May set to invoke Article 50 in less than a week, investor jitters have slowly begun to creep back into the market as the UK faces up to two years of complex negotiations.

The government is set to purse a ‘hard Brexit’ as it seeks to gain greater control over immigration, sacrificing access to the single market in the process.

The PM has pledged to get a trade deal of equal value with the EU following the split, with Theresa May saying in a recent speech in Wales;

‘I want to ensure we get the best possible deal for the United Kingdom. We are going to be out there, negotiating hard, delivering on what the British people voted for.’

Markets however have questioned the feasibility of such an agreement, with many economists predicting that the UK’s economy will suffer without free access to its largest trading partner.

The fall in the Pound ahead of the activation of Article 50 also suggests that markets have not finished pricing in Brexit yet, possibly meaning that Sterling could fall further once the process officially starts new week.

<h2>Canadian Dollars Gains Muted by Slumping Oil Prices</h2>

The Canadian Dollar found its advance slowed on Wednesday as oil prices began to retreat once again following the latest US Crude Stockpile figures.

The Energy Information Administration reported this afternoon that US crude inventories added nearly five million barrels for the week ending March 17th, with was a marked recover from 237,000 barrel contraction the week before.

West Texas Intermediate crude prices fell 1.5% following the data, bringing prices crashing down to $47.50 a barrel.

Prices have also been dampened by Saudi Arabia as it declared that it would not partake in an extension of OPEC’s production cuts past June as US Shale producers continue to ramp up output.

Without the full support of all its members any attempts by OPEC to raise the price of oil is likely to be largely ineffective.

<h2>GBP CAD Exchange Rate Forecast: UK Retail Figures Ahead</h2>

The Pound may be able to recoup some ground during tomorrow’s session as the UK’s latest retail data is expected to show that sales grew 0.4% in February, following a 0.3% contraction at the start of the year.
Meanwhile the Canadian Dollar may strengthen on Friday with the release of the latest domestic inflation figures. Analysts predict that the inflation rate will hold steady at 2.1% in February but should consumer prices rise for the third consecutive month the ‘Loonie’ may rise.

<h2>Current Interbank Exchange Rates</h2>

At the time of writing the GBP CAD exchange rate was trending around 10.50 and the CAD GBP exchange rate was trending around 0.09.