The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate softened at the close of last week as the UK’s Manufacturing PMI fell short of forecasts. Further movement in the GBP/CAD currency pair can be expected in the days ahead.
Canada’s own manufacturing report also showed a slowing in activity, but as the UK stat bolstered bets that the Bank of England (BoE) will leave interest rates on hold for a considerable time, the Pound suffered more from the data.
The currency market is likely to be volatile over the coming week as traders will be hoping to make up for lost time over the holiday period.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate to Soften on Monday
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 1.8017.
On Monday morning, the Canadian Dollar strengthened versus many of its major peers as a result of their richest family betting on an oil rise. After having made a fortune on grain with a similar risky bet, the Richardson family plan on expanding their Oil and Gas unit, agreeing the purchase of 550 additional wells.
The Pound Sterling, meanwhile, is seeing movement according to fluctuations in the currency market ahead of construction data due later on Monday morning. A slight declination can be attributed to dampened sentiment towards the Bank of England as they look to delay monetary policy normalisation as long as possible.
GBP/CAD Exchange Rate to Hold Steady on Tuesday
Once again, Tuesday will see a complete absence of Canadian economic data. However, the UK Services PMI is forecast to print in the same region as the previous figure. Should the UK Services PMI meet with expectations, the Pound is likely to hold steady against its major peers. It is fair to say, however, that UK services are important domestically and any swing to a positive or negative result will provoke volatility.
GBP/CAD Exchange Rate to Dip on Wednesday
Wednesday will see a distinct lack of British data, but the Pound is likely to soften as we near the Bank of England (BoE) interest rate decision. For those invested in the Canadian Dollar, Balance of Trade and the Ivey PMI will be of interest.
GBP/CAD Exchange Rate to Fluctuate on Thursday
With the Bank of England interest rate decision due on Thursday, the Pound is likely to fluctuate against its major peers. Traders will be hoping that the BoE follows the Federal Reserve’s move to end, or at least start the reduction of, quantitative easing. An absence of Canadian data will see the ‘Loonie’ (CAD) subject to fluctuations in the currency market.
GBP/CAD Exchange Rate to Endure Volatility on Friday
With a plethora of economic data publications pertaining to both the UK and Canada scheduled for release on Friday, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is likely to be subject to volatility. For those invested in the Canadian Dollar, domestic Unemployment Rate and Employment Change will be of significance. From a UK perspective, Industrial Production, Manufacturing Production, Balance of Trade and the NIESR GDP Estimate will all influence Sterling movement.
On Sunday the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trading in the region of 1.8037
