Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast to Strengthen on Oil Prices
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate advanced by around 0.30% on Friday morning.
Despite a complete absence of domestic data to provoke changes, the Pound Sterling strengthened versus many of its currency rivals on Friday. This is likely to be the result of positive trader sentiment after Bank of England Governor Mark Carney’s hawkish comments on Thursday. Carney stated that a benchmark rate hike is likely to occur at the turn of the year with interest rates then rising incrementally over a three-year period.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 2.0306.
After the Bank of Canada (BOC) cut the cash rate by 25 basis points on Wednesday, the ‘Loonie’ (CAD) has been trending bearishly versus its major rivals. Further depreciation can be linked to low crude prices, which are set to fall further as Iran adds to the global stockpile. Canada’s Consumer Price Index is likely to have a significant impact on ‘Loonie’ movement later on Friday.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending within the range of 2.0237 to 2.0320 during Friday’s European session.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Advance ahead of US Consumer Price Index
The Pound Sterling to US Dollar (GBP/USD) exchange rate edged higher by around 0.28% during Friday’s European session.
In addition to Bank of England Governor Mark Carney’s hawkish comments regarding rate hikes, Monetary Policy Committee (MPC) member David Miles was also positive with regards to the UK’s policy outlook. This surprised many economists given that David Miles is usually very cautious with his stance on monetary policy.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5648.
In response to a mixture of positive domestic data results and heightened demand for safe-haven assets, the US Dollar strengthened versus many of its currency competitors on Thursday. Friday has seen the US asset decline, however, which is likely to be the result of trader profit-taking after Thursday’s surge opened up some attractive selling opportunities. Consumer Price data due for publication later on Friday afternoon has the potential to provoke US Dollar volatility.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the range of 1.5599 to 1.5673 during Friday’s European session.
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