The Pound Sterling to Canadian Dollar (GBP/CAD) and Pound Sterling to US Dollar (GBP/USD) exchange rates jumped in Friday’s European session after the UK Unemployment Rate fell to the lowest level since July 2008.
The Unemployment Rate figure recorded a decline from 5.7% to 5.6% in February while the Average Weekly Earnings ecostat noted a rise from 1.6% to 1.8% on the year in February.
The unemployment drop looks good for the current conservative government in the run up to the UK general election in May. In recent weeks we have seen political debate heat up significantly and pressure the Pound Sterling to Canadian Dollar (GBP/CAD) and Pound Sterling to US Dollar (GBP/USD) exchange rates lower.
UK Prime Minister David Cameron tweeted: ‘More strong jobs figures show our plan is working – helping put Britain back to work.’
Canadian Dollar and US Dollar Exchange Rates Lower Ahead of Inflation Stats
Meanwhile, the Canadian Dollar and US Dollar are in for some exciting trading later in the session with the release of both the Canadian and US Consumer Price Indexes (CPI) which will highlight current levels of inflation in the nations.
The Canadian Core Consumer Price Index is forecast to remain at 2.1% on the year in March, while the core US inflation reading is predicted to remain at 1.7%. However, any climb in either index is likely to give the respective currency a boost against other major peers.
The US Dollar could also come under pressure from the University of Michigan Confidence figure, out later in Friday’s North American trading. The index is forecast to climb from 93 to 94 in April and could help the US Dollar to Canadian Dollar (USD/CAD) and US Dollar to Pound Sterling (USD/GBP) exchange rates rally if correct.
Brent crude oil prices fell on Friday after a few rallies earlier in the week as the Organisation of Petroleum Exporting Countries (OPEC) announced an increase in oil production in March.
March output jumped by a massive 810,000 barrels to 30.79 million barrels per day.
Industry expert Phillip Futures stated: ‘It seems Saudi Arabia has not had enough of low oil prices.’
The massive surge in March makes up a third of global supply and as a result of the crude oil tumble, the Canadian Dollar was offered little support.
Pound Sterling to Canadian Dollar (GBP/CAD), US Dollar (GBP/USD) Exchange Rate Forecast
The Pound Sterling to Canadian Dollar (GBP/CAD) and Pound Sterling to US Dollar (GBP/USD) exchange rates will be in for movement on account of the US and Canadian inflation figures as well as a result of any global developments on Friday.
Furthermore, G20 finance ministers are also meeting in Washington, which could cause some currency market movement. On Sunday, the International Monetary Fund (IMF) will be holding its spring meeting which could cause additional fluctuations.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is trading at 1.8290; the Pound Sterling to US Dollar (GBP/USD) exchange rate is trending in the region of 1.5026.
