The Pound has seen big losses vs the Canadian Dollar during today’s trading session even though the Bank of England have dramatically raised the growth forecast for 2017.
The Quarterly Inflation Report also confirmed that ‘there have been relatively few signs of the slowdown in consumer spending that the committee had anticipated following the referendum.’
The UK’s economy is clearly going from strength to strength but the main problem for Sterling is due to the ongoing uncertainty of Brexit and when Article 50 will be allowed to be triggered.
The government has now published its official document relating to the plans for Brexit with 12 key principles.
However, there are criticisms that the white paper has not made it clear what will happen to the UK’s relationship with the single market.
Global investors are worried about what may happen to the UK if we leave the single market and this is why Sterling has fallen by so much against the Canadian Dollar during the day.
Indeed, we have seen GBPCAD exchange rates fall by as much as 3 cents from the high to the low as concern surrounding the future of the British economy has caused Sterling to have huge falls vs all major currencies during today.
Bank of England governor Mark Carney claimed that strong economic projections do not necessarily mean that we will remain unscathed by the Brexit and he has opened the door to further easing of monetary policy if required and another reason for Sterling’s collapse today.
Clearly the Pound is being negatively affected by what is happening politically and until we get some form of clearer future then I expect Sterling to continue to struggle vs the Canadian Dollar.
If you have a currency transfer to make please send me an email with an explanation of your particular requirement and I am confident that I’ll be able to save you money on exchange rates compared to using your own bank.
Having worked for one of the UK’s leading currency brokers for 15 years then contact me directly for further information or a free quote and I look forward to hearing from you.
Tom Holian [email protected]