Pure FX Blog

5 December 2017

Loonie Hits 1-Week High Versus Pound, as Brexit Ireland Deal Delayed

The Canadian dollar to pound interbank exchange rate has hit 0.5887 today, its highest in 1 week, as the UK and the EU are still reaching an agreement for Ireland's border after Brexit. Image credit: Jacqueline Munoz.

The Canadian dollar to pound interbank exchange rate has hit 0.5887 today, its highest in 1 week, as the UK and the EU are still reaching an agreement for Ireland’s border after Brexit. Image credit: Jacqueline Munoz.

by Peter Lavelle

Welcome to Pure FX’s latest update of the Canadian dollar to pound interbank exchange rate.

The loonie dollar jumps versus sterling! The Canadian dollar to pound interbank exchange rate has hit 0.5887 today, its strongest in 1 week, or since November 28th.

The Canadian dollar has strengthened against the pound, because a deal between the UK and the EU for Ireland’s border after Brexit has been delayed.

Yesterday, Northern Ireland’s Democratic Unionist Party (DUP) objected to a plan to keep “regulatory alignment” between Ireland and Northern Ireland after Brexit, thus weakening the pound.

In particular, the DUP’s leader Arlene Foster objected, because this plan would prevent Northern Ireland from leaving the EU “on the same terms” as the rest of the UK, so weighing on sterling.

This has hit the pound, because the DUP’s objection raises the odds that the UK and the EU must keep negotiating Ireland’s border, after December 15th’s deadline for trade talks to start!

CA dollar rises, as Canada’s unemployment tumbles

What’s more, the Canadian dollar to pound interbank exchange rate has also strengthened, because Canada’s unemployment unexpectedly tumbled in November, said new data last week.

According to Statistics Canada on Friday, Canada’s jobless rate tumbled -0.4% last month, to just 5.9%, well beyond financial market forecasts for 6.2%, thereby boosting the Canadian dollar.

In particular, Canada created an outstanding +79,500 new jobs in November, easily ahead of predictions for +10,000 new roles, thus strengthening the CA dollar too.

Overall, Canada has now created jobs for the last 12 consecutive months, the longest streak of job creation since March 2007, thereby lifting the loonie dollar higher also.

With all this in mind, the Canadian dollar has hit this 1-week high versus the pound!

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Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email peter.lavelle@purefx.co.uk.

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