Pound slides after latest Bank of England comments, will the GBP to CAD rate continue to drop this year? (Joseph Wright)

Pound to Dollar Rate Pushed Higher by Risk-on Mood

The Bank of England yesterday opted to keep interest rates on hold, and whilst this was expected it was the less bullish voting patterns and dovish comments from the BoE’s governor that caused the Pound to fall further.

Due to the increasing inflation pressures after the Pound’s drop in value since the Brexit vote, there had been talk of raising interest rates in order to counter this, and previously the voting members of the Bank of England had voted at almost a 50/50 split in favour of a hike.

The voting outcome wasn’t as close this time at 6-2, and therefore the Pound fell as soon as the result was released and it wasn’t helped after the governor of the Bank of England, Mark Carney announced that growth forecasts in the UK for 2017 have fallen from 1.9% down to 1.7%, along with a drop of 0.1% for 2018 also.

There is also talk of a ‘Brexodus’ of banks from the UK due to fears of an difficult transition period once Brexit comes into full effect.

Moving forward the Pound to Canadian Dollar rate is likely to be driven by sentiment as well as data releases as investors watch closely in order to gauge how the UK is performing in the current period of uncertainty, and if you wish to be kept updated regarding short term price changes do feel free to get in touch.

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 [email protected] and I will endeavour to get back to you as soon as I can.