On Wednesday, GBP/CAD took a break from the bearish move and rose 0.23%, but today it might wipe out all gains.
The pair has already declined 0.12% to 1.6858 as of 10:22 AM UTC and is pointing downwards, though there is no clear sign of where the next stop is.
The British pound is under pressure amid the Brexit uncertainty and weak housing market data.
Mortgage Approvals Tumble to 6-Month Lows
Last month, the number of new mortgages approved by UK banks declined to the lowest level in six months, according to the industry’s trade association UK Finance. The survey adds to worries that the housing market is decelerating ahead of the Brexit deadline set for October 31.
UK Finance announced that British banks gave green-lighted 42,310 loans for property purchase in September against 42,527 in August. Elsewhere, the number of approval for remortgaging surged to 32,649, which is the highest level in almost two years.
The association said that consumer credit increased to 4.5% year-on-year, which is the highest level in 19 months.
EU to Support Brexit Delay
While Canada is thinking about possible coalitions after the national election on Monday, the GBP/CAD pair is now monitoring every Brexit-related reaction.
UK Prime Minister Boris Johnson has the challenging job of handling the Brexit process beyond October 31. Johnson lost control after parliament didn’t support his deal on Saturday during a meaningful vote, leaving him with the choice to pass a Brexit bill through both chambers.
The parliament finally voted in favor of the bill yesterday, though it refused to rush in line with Johnson’s timeline.
The only option was to request another delay, and it seems the EU is ready to back it.
Earlier today, a senior official told the press that the UK would ultimately leave the bloc on the terms of Johnson despite the fact that the parliament had hindered the timing.
Speaking about the timing of divorce, the anonymous source said: “Parliament has taken back control.”
When asked whether there will be an election before Christmas in this case, he responded: “Perhaps, we shall see.”