The Pound vs the Canadian Dollar has experienced some positive gains today after Bank of England member Andy Haldane suggested that he was considering voting for an interest rate hike this month which would have taken the vote to 4-4. He also suggested that the Brexit risk is not gone but that UK growth remains solid.
Last week when the minutes were published the split was 5-3 in favour of keeping interest rates on hold which came as a big surprise to the market as for months we have only seen 1 of the members vote for a rate hike so this gave the Pound a brief boost.
However, since then the Pound has fallen to its lowest level to buy Canadian Dollars in months so today’s comments from Haldane helped to give the Pound a brief respite from the recent losses.
Canadian Retail Sales are due out tomorrow afternoon with the expectation for 0.7% growth month on month so anything different is likely to cause movement for Sterling vs the Canadian Dollar.
The main issue that is affecting Sterling exchange rates against all major currencies is that of the Brexit talks which so far have not gone that well.
When you look at it there are 27 member states all wanting one thing which is to maintain the stability of the European Union so in my mind I cannot see how the talks will go that positively in the near future.
Therefore, this is why I think in the short term we could see problems facing the Pound vs the Canadian Dollar.
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