GBP/CAD Sinks as Borrowing Costs and Trade War Fears Weigh on Pound

The Pound to Canadian Dollar exchange rate has been on a decline since last week, reaching as low as CA$1.8718, down around 0.5% from the start of the session.

This downward trend is largely attributed to fears that a rise in borrowing costs could pose a risk to the UK's upcoming Autumn budget, with Sterling bearing the brunt of the turbulence sweeping through global bond markets.

The Canadian dollar, also known as the 'Loonie', got off to an underwhelming start last week but received a boost following the Bank of Canada's interest rate decision, which warned of upside risks to inflation and potential need for monetary policy tightening in the future.