The Pound Canadian Dollar exchange rate has been stable during trading lately, but may be dramatically shifted by the outcome of an ongoing Article 50 appeal process.
GBP CAD Exchange Rate Remains Positive as Article 50 Appeal Continues
The Pound has managed to remain in demand against the Canadian Dollar during trading today, though primarily on the back of the second day of hearings in the Supreme Court.
The second of four days of Article 50 appeals has brought further scrutiny of the Government’s case, which has proven beneficial to GBP on an otherwise data-less day.
For the Canadian Dollar, demand has generally been positive, although recent dips in oil and gold prices have limited interest in CAD so far.
Pound Sterling Predicted for Bullish Turn if 2017 Sees Government Lose Article 50 Appeal
Future Pound Canadian Dollar exchange rate performance will be strongly linked to the Article 50 appeal, which is due to be decided in early 2017.
While there is expected to be a period of ‘radio silence’ between the appeal itself and the verdict in 2017, the judges’ call on the matter could see Sterling rally or crash, depending on how the decision falls.
If the Government loses its appeal, the GBP CAD exchange rate could soar, owing to Parliament having to debate the Article before it is officially triggered.
This would stall proceedings and, given the 18 month time limit now imposed by Michel Barnier, would ultimately keep the UK in the EU for months, if not years, longer than if the Government had won back the automatic triggering right.
Future Canadian Dollar Demand Tied to Crude Oil Costs
The Canadian Dollar’s future performance against the Pound is set to be influenced by commodity prices.
While the cost of crude oil was sent soaring in late November by OPEC’s eventual decision to cut oil production, it has already shown signs of petering off.
This comes amid concerns that as the US is not a member of OPEC, it may undo any oil price rises by continually producing oil at an uncut rate. While this might not send the cost of crude downhill again, it could still put in place a ceiling for oil prices, which could see volatility resurface once again.
This would prove damaging for Canadian Dollar demand, given that stable global trading conditions are the most desirable for investment in a currency such as CAD.
Recent Interbank Exchange Rates
At the time of writing, the Pound Canadian Dollar (GBP CAD) exchange rate was trending in the region of 1.69 and the Canadian Dollar Pound (CAD GBP) exchange rate was trending in the region of 0.59.
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