The Canadian Dollar exchange rate experienced movement today following the release of the latest news regarding Canadian growth.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate softened during the North American session as Canada’s growth data for May came in on-estimate.
The reports showed that the Canadian economy expanded by 0.4% in May, month-on-month, following growth of 0.1% in April.
The Canadian economy expanded by 2.3% on the year.
Increased levels of auto-based output were one of the main factors behind Canada’s slightly stronger performance.
The expansion was fairly broad-based with both retailers and wholesalers posting gains.
There was no change in public sector output for the month.
After the data was published the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate dipped slightly, but managed to continue trending above the day’s low of 1.8392.
The Canadian Dollar put on a fairly mixed performance against several of its other most-traded currency counterparts.
The US Dollar to Canadian Dollar (USD/CAD) exchange rate was able to advance to a high of 1.0929.
While the growth report was comparatively encouraging, the fact that Canada could now be perceived as lagging behind the neighbouring US is a concern.
In the view of economist James Marple; ‘the Canadian economy has outperformed the US but that’s been largely due to domestic demand fuelled by household debt and a housing market rising above fundamentals. But to maintain even the growth rate we’ve had we’re going to need to transition to exports as a driver of the economy.’
Yesterday US figures showed annualised quarterly expansion of 4.0%.
However, some industry experts believe that economic strength in the US could be beneficial for Canada.
Before Canada’s GDP data was published economist Sal Guatieri noted; ‘It’s possible, in light of the stronger US report, that we may see an upside surprise. Canada will definitely benefit from a stronger US economy.’
Separate Canadian data showed that Average Weekly Earnings increased by 2.6% on a year-on-year basis in May, down from a positively revised annual increase of 3.2% in April.
Pound Sterling to Canadian Dollar Exchange Rate Forecast
Tomorrow movement in the Pound Sterling to Canadian Dollar exchange rate could be sparked by the UK’s Markit Manufacturing PMI.
It has been forecast that the measure of manufacturing softened slightly in July, moving from 57.5 to 57.2 but remaining well above the 50 mark separating growth from contraction.
A surprising result may trigger GBP/CAD volatility during the European session.
Before the weekend investors will also be taking an interest in the Royal Bank of Canada’s Manufacturing PMI.
Of course, the US Non-Farm payrolls report is the day’s major news.
The Pound Sterling to Canadian Dollar exchange rate is currently trending in the region of 1.8401, down over 0.2% on the day.
The Canadian Dollar (CAD) exchange rate remained lower against the US Dollar.
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,0.5432,
Canadian Dollar,,US Dollar,0.9168,
Canadian Dollar,,Euro,0.6845,
Canadian Dollar,,Australian Dollar,0.9860,
Canadian Dollar,,New Zealand Dollar,1.0821,
US Dollar,,Canadian Dollar ,1.0914,
Pound Sterling,,Canadian Dollar,1.8408,
Euro,,Canadian Dollar,1.4605,
Australian Dollar,,Canadian Dollar,1.0139,
New Zealand Dollar,,Canadian Dollar,0.9266,
[/table]
Comments are closed.