With the Pound posting widespread declines in the wake of moderately disappointing UK data, the GBP to CAD exchange rate slipped in spite of a lack of significant economic figures for Canada.
Yesterday the Canadian Dollar put in a patchy performance against several of its most traded peers, fluctuating against the Pound, dipping to a two-week low against the ‘Aussie’ and hitting a two-week low against the Yen.
The CAD/USD pairing also failed to secure gains despite the publication of less-than-impressive US retail sales data.
On Wednesday however the ‘Loonie’ was supported by renewed risk appetite and the news that the price of oil had climbed to an almost three-week high.
Advancing copper prices also gave the commodity-driven currency a boost.
As some investors are paring back their expectations for US growth, the Canadian Dollar strengthened against a vulnerable ‘Greenback’.
Meanwhile, the ‘Loonie’s gains against the Pound were largely enabled by the news that the number of UK jobless claims fell by less than anticipated in April while wage growth stalled.
Average weekly earnings in the UK were up 1.7 per cent in the three months to March, year-on-year.
A gain of 2.1 per cent had been expected.
As the UK’s unemployment rate sliding to a five-year low had already been priced into the market, the Pound experienced minimal movement after a report confirmed the fact.
Prime Minister David Cameron said this of the result; ‘There’s more to do, but it’s welcome unemployment is down again. More jobs means more financial security for people.’
The Pound also softened as the Bank of England defied expectations for a hawkish inflation report.
The BoE failed to indicate when interest rates might be increased beyond commenting that they would remain at record lows for the foreseeable future.
Inflation and growth projections for the UK were also left unaltered.
During a quiet North American session Canadian Teranet/National Bank HPI had little impact on the Pound to Canadian Dollar pairing.
The report showed a 0.5 per cent month-on-month increase in April and a 4.9 per cent year-on-year advance.
A lack of further UK news could limit movement in the GBP to CAD exchange rate before the weekend, but tomorrow’s Canadian manufacturing shipments and existing home sales figures could well influence the direction taken by the paring.
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,0.5471,
Canadian Dollar,,US Dollar,0.9177,
Canadian Dollar,,Euro,0.6693,
Canadian Dollar,,Australian Dollar,0.9766,
Canadian Dollar,,New Zealand Dollar,1.0575,
US Dollar,,Canadian Dollar ,1.0898,
Pound Sterling,,Canadian Dollar,1.8270,
Euro,,Canadian Dollar,1.4946,
Australian Dollar,,Canadian Dollar,1.0243,
New Zealand Dollar,,Canadian Dollar,0.9440,
[/table]
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