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Pound Sterling Canadian Dollar (GBP/CAD) Exchange Rate Rises as Bercow Calls for Parliament to ‘Convene Without Delay’

September 24, 2019 - Written by John Cameron

Supreme Court Decision Buoys Pound Canadian Dollar (GBP/CAD) Exchange Rate

The Pound Sterling Canadian Dollar (GBP/CAD) exchange rate rose and the pairing is currently trading at around CA$1.6550.

Sterling edged up against the Canadian Dollar after the UK Supreme Court ruled the Prime Minister’s decision to suspend parliament for five weeks unlawful.

The court said it was wrong for Boris Johnson to prevent MPs from carrying out duties in the run-up to the 31 October Brexit deadline.

The Pound rose as House of Commons Speaker, John Bercow called for parliament to ‘convene without delay’.

He called for MPs to return to Westminster on Wednesday and added there would not be any Prime Minister’s Questions.

While Sterling rose following the ruling, the court going against the government is likely to increase uncertainty.

Commenting on this, Edward Park, deputy chief investment officer at Brooks Macdonald Asset Management said:

‘This latest twist in the Brexit narrative likely delays the decision point for Brexit, but does not make it any clearer whether the UK will leave with a deal, without a deal or not at all.’

Falling Oil Prices Send the Canadian Dollar (CAD) Lower

Meanwhile, the ‘Loonie’ slumped against Sterling as reports revealed Saudi Arabia is set to restore its full oil output by next week.

Reports revealed that Saudi Arabia restored more than 75% of its output that was lost after attacks on its oil facilities.

Following the attacks the oil-sensitive ‘Loonie’ benefitted from the 20% spike in oil prices.

Now prices have stabilised and Energy Minister, Prince Abdulaziz bin Salman and chief executive of Aramco, Amin Nasser have stated output will be completely back to normal by the end of September.

Added to this, on Tuesday oil prices slumped as weak manufacturing data from Europe and Japan turned market attention to the gloomy outlook.

This left the Canadian Dollar under pressure against the Pound, causing the pairing to rise.

Pound Canadian Dollar Outlook: Will Falling Oil Prices Weigh on CAD?

Looking ahead, it is likely the Canadian Dollar (CAD) could slide further against the Pound (GBP) if oil prices continue to fall.

If Saudi Arabia continues to restore its lost oil production, the price of oil could continue to edge down and the ‘Loonie’ could slide.

Meanwhile, the Pound Sterling Canadian Dollar (GBP/CAD) exchange rate could continue to rise as parliament reconvenes on Wednesday.

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