Bank of England governor stays which helps GBPCAD rates (Tom Holian)

Sterling Canadian Dollar exchange rates have stabilized overnight as Bank of England governor Mark Carney has announced that he’ll be staying on for an extra year until 2019.

The extension means he will be here for the duration of negotiations concerning Article 50 and he will be there as governor as the UK navigates its way out from the European Union.

It can be argued that this is good news for Sterling exchange rates as it means having some more stability for the central bank.

The possible banana skin of the week will come on Thursday when the Bank of England announce their latest interest rate decision. At the same time the UK Quarterly Inflation Report is also published and I think this could be a volatile day for GBPCAD exchange rates especially if the UK looks at cutting interest rates or hints that an interest rate cut may be coming.

Inflation is one of the main reasons for deciding which way interest rates go and since the Brexit vote back in June Sterling has plummeted against all major currencies.

With GBPUSD rates at 31 year lows as we import so much from overseas then I think the current quarter that we’re in could be very concerning for the British economy. Prices for raw materials will be going up and ultimately this will impact the basket of goods purchased in the UK.

Having worked in the industry since 2003 I am confident that I can offer you better exchange rates when either buying or selling Canadian Dollars and also help you with the timing of your transfer.

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 and I look forward to hearing from you. Tom Holian [email protected]

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