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BoE has responsibility to communicate Brexit risks
Despite there being little data from Canada today, it is one of the most important days of the weeks for the GBP/CAD crosses.
Yesterday despite the Crude Oil inventories coming in much worse than forecast, the GBP/CAD exchange rates still declined when the UK released its latest Manufacturing figures, also well below the estimates.
Today we have the latest interest rate decision from the UK along with the accompanying statement. This did not hold any surprises with interest rates being kept at the record low of 0.5% for another month running, as was widely expected. What has caused the exchange rates to move today, was the speech shortly after the decision by BoE Gov. Carney.
This is when he discussed the risks associated with the possible Brexit. On the 23rd June the UK will hold a vote, whether to remain in the EU or not.
He dodged any questioning no his personal opinion but did say the “BoE has responsibility to communicate Brexit risks”. When discussing the downside to leaving the EU, the pound started to fall against all its major crosses, including the Canadian dollar.
GBP to CAD Graph
Where are the exchange rates heading?
With the latest polls suggesting the vote for the EU referendum will be a very close call, the nearer we get to the vote, the more we are likely to see the pound weaken against it’s counterparts, including the Canadian dollar. Here at Foremost Currency Group we can be your eyes and ears in the currency markets, keeping you up to date with the latest news effecting your currency purchase, keeping you one step ahead of the markets.
Opening a trading facility does not cost or obligate you in any way and only takes a couple of minutes online. We allow you to lock into a rate of exchange for up to two years into the future and have various contracts to suit every requirement.
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