GBP/CAD continues to delight swing traders with a medium-term uptrend that started on October 10. However, the pair might show increased volatility this week amid Brexit updates and the Canadian federal election.
One British pound buys 1.7020 Canadian dollars as of 09:30 AM UTC. The price has gained 0.35% so far, fluctuating above the support line of the uptrend.
Brexit in the Spotlight
The events surrounding Brexit made the headlines this weekend, with UK Prime Minister Boris Johnson failing to obtain the support of the parliament for his withdrawal agreement.
Thus, Johnson was obliged by law to send a request letter to the EU asking for the extension. Note that the current deadline is on October 31. Previously, the opposition passed the so-called Benn Act so that the PM would be required to request the extension if no deal is approved by the end of Saturday.
While Johnson abides by the law, he refused to sign the letter and sent another notice to the EU, at this time a signed one, explicitly expressing his support for a withdrawal process under the current deadline.
Nevertheless, if the PM fails to obtain the backing of the UK parliament, the EU is ready to offer a three-month extension, according to Bloomberg, which cited unnamed diplomatic sources.
Meanwhile, the chances are that the parliament will vote Johnson’s deal this week. He is asking today the House of Commons to support the current agreement in a new “meaningful vote,” and there is optimism that he would succeed.
Foreign Secretary Dominic Raab told BBC:
“We appear to have the numbers to get this through.”
Canada also has an important day on Monday as it organizes the federal election to elect members of the House of Commons to the 43rd Canadian Parliament.
The two top candidates are Prime Minister Justin Trudeau, leader of the Liberal Party, and Andrew Scheer, leader of the Conservative party.