The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate strengthened by around 0.27% on Tuesday morning.
Despite having shown a weekly increase amid speculation that demand would increase, oil prices fell once again on Tuesday as supply growth continues. The commodity-correlated Canadian Dollar softened on Tuesday as a result of declination in the oil market.
The Pound, meanwhile, is generally holding steady as traders prepare for Wednesday’s labour data. A slight Sterling appreciation can be attributed to Labour promoting the UK-EU relationship in their electoral campaign.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 1.8088.
Yesterday…
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is trending within a narrow range on Monday morning.
As oil prices rise towards $50 a barrel, the Canadian Dollar strengthened from a sustained bearish run. Improved risk sentiment, after the dust settled from the shocking Euro cap removal from the Swiss National Bank (SNB), also supported a ‘Loonie’ (CAD) uptrend.
The Pound, meanwhile, is generally trending higher versus most of its major peers after domestic data revealed British house prices rose in January.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 1.8114.
Pound Sterling (GBP) Exchange Rate Trending Higher on House Prices
In the aftermath of Monday’s British economic data, the Pound strengthened versus most of its major rivals. Year-on-year Rightmove House Prices rose from 7.0% to 8.2% in January. On a monthly basis, January’s House Prices increased from -2.2% to 1.4%.
‘Early 2015 statistics currently point in the right direction for home-movers, with the Chancellor’s early Stamp Duty Christmas present perhaps being the spur for people making New Year resolutions to get on with moving,’ Rightmove Director Miles Shipside said.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has fallen to a low today of 1.8082.
Canadian Dollar (CAD) Exchange Rate Gains on Crude Prices
Although far from showing signs of settling, a recent rise in oil prices supported the commodity-correlated Canadian Dollar. As traders speculate that supply outside of OPEC will slow, crude showed its first weekly gain in two months.
‘The bigger picture remains from a fundamental point-of-view,’ a Sydney based strategist stated. ‘We have a supply surplus and there is yet to be any significant news of reduction in capacity so the market remains very vulnerable to further price decline.’
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast to Hold Steady
With a lack of influential domestic data to curb the trend, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is likely to continue trending within a narrow range. With that being said, Canadian International Securities Transactions data may cause ‘Loonie’ volatility, in addition to the potential fluctuations in the fragile oil market.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate reached a high today of 1.8147.
