Today pound sterling (GBP) reached its highest level since October. Economists attribute the pound’s rise to the US dollar’s performance, as well as Brexit Secretary David Davis’ comments in the House of Commons today. Davis indicated that the United Kingdom would be willing to pay for access to the European Union’s single market, if necessary, in order to provide England with the best possible access to goods and services. His comments led to a great sigh of relief across the foreign exchange market, removing a layer of the uncertainty involving the United Kingdom’s future outside of the European Union. This in turn, led to an increase in the demand for pounds, with GBP/EUR conversion reaching its highest since September, reaching 1.1949.
Canada & Oil
Today oil prices rose, following news that OPEC will cut oil production over the next eight years. This cut is anticipated to raise the demand of oil, thus helping economies that are driven by oil. The Canadian dollar, or loonie, is tied closely to oil, as Canada is an oil driven economy. Because of oil’s rise in price, the Canadian dollar has simultaneously gained, today trading above .75 US cents to the Canadian dollar. The Canadian dollar has been one of the only currencies to gain on the US dollar in the DXY Index in recent weeks, as the US dollar has enjoyed its strongest performance in years following the election of Donald Trump.