With Canada’s highly-influential employment figures due out tomorrow, the Pound to Canadian Dollar (GBP/CAD) exchange rate advanced modestly during the European session.
At the outset of the week the Canadian Dollar was bolstered by an uplifting domestic Ivey PMI.
However, since then both Canadian Building Permits and Housing Starts reports have fallen short of forecasts, and while the Pound has been pressured by domestic concerns, the GBP/CAD exchange rate has gained.
Although the soft Canadian figures were disappointing, it was the plummeting price of Brent crude oil (Canada’s main commodity) which was largely responsible for the ‘Loonie’s softness.
The Canadian Dollar briefly rose after the Federal Open Market committee published dovish meeting minutes, but downward pressure ensured gains were short-lived.
Brent crude oil is now approaching 90 Dollars per barrel.
In the opinion of industry expert Tom Finlon; ‘In the very near future, Brent will fall below $90. There is no reason for the market to go up. In order for prices to turn around, there has to be a measurable alteration in global production.’
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate fell to a low of 1.7930
The GBP/CAD pairing was barely affected by the Bank of England’s latest policy meeting. As expected, the central bank took no action.
Various industry experts have cited the negative impact of the Eurozone’s faltering economy as a reason for leaving UK borrowing costs at record lows for the foreseeable future.
Former BoE official DeAnne Julius noted; ‘The underlying fundamentals are really pretty weak in the Eurozone. It’s certainly a factor that will hold down our growth rate.’
The Pound to Canadian Dollar exchange rate achieved a high of 1.8004
During the North American session Canada published its Home Price data.
Property values were shown to have advanced by 0.3% in August on a month-on-month basis, surpassing expectations for prices to grow by 0.1%. It was the strongest price increase recorded since January.
Today’s Pound Sterling to Canadian Dollar Exchange Rate Forecast
The GBP/CAD exchange rate is likely to continue trading in its present range until tomorrow’s influential economic reports are published.
The UK is due to release trade balance and construction output stats, while Canada will release potentially influential employment data.
The Canadian economy is expected to have added 20,000 positions in September, making up for the 11,000 lost in August. It has been projected that the unemployment rate held at 7.0%.
A stronger-than-anticipated jobs gain could give the Canadian Dollar a boost before the weekend.
That being said, if the BoE officials due to deliver speeches in Washington tomorrow advocate UK interest rate hikes, the Pound may well fight back.
The Pound to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 1.7979.
UPDATE
The Pound Sterling to Canadian Dollar exchange rate is currently trending in the region of 1.8009.
A report from the International Monetary Fund on Friday has sparked market volatility. The report suggested that excessive risk taking on global markets, due to prolonged period of low interest rates, could cause a fresh financial crisis.
As a safe-haven asset the US Dollar has gained a little from the IMF report. By tracking its progress the Canadian Dollar has also strengthened a little.
Currently the Pound to Canadian Dollar exchange rate is holding relatively steady as investors await the Canadian labour market data due for publication later in the day.
Canadian Dollar (CAD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Canadian Dollar,
,Pound Sterling,0.5565,
Canadian Dollar,,US Dollar,0.9011,
Canadian Dollar,,Euro,0.7078,
Canadian Dollar,,Australian Dollar,1.0190
Canadian Dollar,,New Zealand Dollar,1.1465,
US Dollar,,Canadian Dollar ,1.0898,
Pound Sterling,,Canadian Dollar,1.7979,
Euro,,Canadian Dollar,1.4115,
Australian Dollar,,Canadian Dollar,0.9821,
New Zealand Dollar,,Canadian Dollar,0.8718,
[/table]
