Today is an important day on the financial calendar for Sterling exchange rates and I’m expecting some sharp movements in the GBP/CAD exchange rate around lunchtime, as this is when the Bank of England’s Monetary Policy Committee will be announcing their most recent Interest Rate decision.
GBP/CAD is currently trading just above an almost 3 year low as the Pound has been under continued pressure since the shock ‘Brexit’ decision was announced, and I think that if there is a rate cut, particularly a larger cut than expected we could see the 52 week low of 1.6990 tested once again.
It’s been all eyes on the UK since the decision to leave the EU and this has benefited Canadian Dollar sellers. Last night the UK’s new PM announced her new cabinet with some of the decisions coming as a surprise, particularly Boris Johnsons appointment as Foreign Secretary.
That being said both the FTSE 100 and Sterling exchange rates have begun the day optimistically with the FTSE 100 up 0.8% and Sterling trading up versus all major currency pairs. Exchange rates have been volatile over the past few days and I’m expecting this to continue whilst the changes continue to weigh on Sterling’s value, and personally I think that there is further potential for downside for the GBP/CAD exchange rate until the UK’s political future is more certain.
The Bank of Canada opted to leave their Interest Rate unchanged overnight at 0.5%, so now it’s up to the Bank of England to show us their plans moving forward. That decision will be made this afternoon at 12.00 UK time.
Those with an upcoming currency requirement involving the Pound may wish to get in contact with me (Joe) regarding strategies and how best to time the trade. Our specialist currency exchange brokerage doesn’t offer financial advice but we do assist our clients with the timing of their trades based on price targets and historical data such as annual and daily highs and lows.
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