GBP and CAD set to struggle in the medium term – Wells Fargo
Economists at Wells Fargo remain somewhat hesitant on the medium term prospects for the British Pound and Canadian Dollar.
Aggressive BoE easing next year should restrain the UK currency
For the Pound, we expect that the Bank of England’s restrictive monetary policy will not prove supportive given slow growth and elevated inflation, while aggressive BoE easing next year should also restrain the UK currency.
For the Canadian currency, slowing growth, lower commodity prices, and substantial monetary easing should also limit the extent of Canadian Dollar gains versus the greenback next year.