Since the UK’s decision to leave the EU, the pound has been losing momentum against the Canadian Dollar. The next key decision that will impact GBPCAD exchange rates is the UK’s interest rate decision next Thursday.
Governor of the Bank of England Mark Carney had already eluded to cutting interest rates last week and many speculators believe this could be as early as next Thursday.
Personally I have to disagree. I believe it’s far too early for the Bank of England to actually know the exact impact of a ‘Brexit’ and potential upcoming events (for example when Article50 will actually be triggered). Therefore I believe Carney will talk down the pound however he will wait until next month until he thinks about cutting interest rates.
I predict GBPCAD will continue to fall in the next couple of weeks until a new Prime Minister is elected and the UK starts to remove the uncertainty.
The currency company I work for enables me to buy and sell Canadian Dollars at rates 2-5% better than other brokerages and high street banks. If you are buying or selling euros this year feel free to send me the currency pair you are trading (CADUSD, CADEUR, CADGBP) the reason for your trade (company invoice, buying a property) and I will email you with my forecast for the currency pair email@example.com. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn