Will this morning’s Inflation data push the Pound to Canadian Dollar lower? (Joseph Wright)

Brexit and Coronavirus Weigh on GBP as Oil Price Collapse Causes CAD Value to Fall

The Pound has lost some of the recent gains its seen against the commodity currencies recently, as the price of oil is recovering while the UK is facing some issues of it’s own.

The rate of inflation is the UK has begun to outstrip the rate of wage growth, and with a general election next month the Bank of England has ruled out an interest rate hike in the short term to contain the rising levels.

This has had quite a knock-on effect to the Pounds value in a short space of time, as investors fear that this squeezing of the UK consumer could result in the UK economy slowing down. Those watching the Pounds value closely will be aware that resilient consumer spending and retail figures have continued to drive the UK economy in these uncertain times, and now there are fears that this could stall which explains the Pounds softening.

This morning there will be an Inflation Report Hearing which will closely examine the Quarterly Inflation Report released from the Bank of England’s Monetary policy Committee earlier this week. This could impact the Pounds value as could Thursday’s GDP figures.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.