GBP CAD Falls after Mark Carney Comments (James Lovick)

GBP EUR Exchange Rate: Weekly Review July 16  

The pound remains at 3 year lows against the Canadian dollar having dropped considerably in the last month. The pound suffered a sharp fall against the dollar yesterday before the Bank of England Governor Mark Carney faced a committee at the House of Lords. The Governor answered questions on monetary policy post Brexit as he has been publicly criticised on his actions and comments that he has made surrounding Brexit. More strikingly he also hinted he may not serve another term at the Bank of England after 2018 and has had a direct impact on the price of sterling even if just for the short term.

This Thursday morning sees UK Gross Domestic Product (GDP) figures and this is likely to create major volatility for the pound across all of the major currencies including the Canadian dollar.

GDP is expected to weaken in the third quarter which represents the first period of economic growth numbers post Brexit. As such there is a huge amount of interest in these numbers and so volatility is expected to be high. The consensus is that GDP will fall from 0.7% to 0.3% although I am more optimistic and feel that the fall in output should not be as significant as this.

With no data releases for the rest of the week from Canada, then British politics continues to be a major driving force. Any clients who are buying or selling Canadian dollars may wish to consider their options ahead of the GDP numbers released tomorrow.

If you have an upcoming CAD currency requirement either buying or selling and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]