The Bank of England are due to meet tomorrow at 12pm and the expectation is that we’ll see an interest rate cut from 0.5% to 0.25%.
The alternative is that we may see the central bank decide to increase the amount of Quantitative Easing or even a combination of both.
When this happened previously Sterling fell very quickly against all major currencies including the Canadian Dollar and if we see an interest rate cut this would be the first time the Bank of England has chosen this course of action since 2009.
On Friday Canada releases its own set of unemployment data on Friday with expectation for 6.9%. However, with the recent slowdown in the oil industry owing to the wildfires that slowed production this could cause a difference in the expected figure.
With most of the UK economic data covering the run up to and post-Brexit not due until later in the month if the data highlights the lack of confidence in the British economy this could be detrimental to the value of Sterling vs the Canadian Dollar.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]
I look forward to hearing from you.