The Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate advanced by 0.50% on Tuesday after domestic data showed that Canadian manufacturing sales soared to a record high and as concerns over the Scottish Referendum continued to weigh upon the UK currency.
According to the Ottawa based Statistics Canada, manufacturing sales in the country increased by 2.5% to $53.7 billion in July, beating the previous record of $53.2 billion set in the same month in 2008.
Economists were expecting a month-on-month increase of just 1.0%. Statistics Canada also revised its June increase up to 0.9% from 0.6%.
Sales are now 8.2% higher than a year earlier, the highest rise since June 2012. The large increase was mostly down to an increase in demand for cars, planes and metals.
Factory shipments in July were powered by a 10.3% gain in transportation equipment sales, to C$10.13 billion.
Within the group, motor-vehicle shipments rose 11.6% to C$5.11 billion. Several auto-assembly plants reported shorter or no shutdowns during July.
Sales rose in 16 of 21 industries, representing about 56% of Canadian manufacturing.
The ‘Loonie’ advanced strongly against the US Dollar (USD) and Euro (EUR) after the data was published. The report adds to signs that the Canadian economy is starting to pick up steam.
Earlier in the month, Statistics Canada reported that the nation’s trade surplus had widened to its best level in almost six years. Building permits also hit a record high.
Losses for the US Dollar were held in check as economist held onto their bets that the Federal Reserve will choose to hike interest rates sooner than expected.
The central bank is also expected to announce a further tapering of its monthly bond-buying programme at Wednesday’s policy meeting.
Canadian Dollar to Pound Sterling (CAD/GBP) Exchange Rate Forecast
The Pound meanwhile fell as economists grow jittery ahead of the Scottish Referendum due to be held on Thursday.
Also weighing upon the UK currency was the release of data earlier in the session, which showed that inflation slowed to match its lowest level in five years.
According to the Office for National Statistics, the annualised rate of consumer price inflation declined from 1.6% to 1.5% in August. The data reduces some of the pressure for the Bank of England to raise interest rates.
Sterling is forecast to come under more pressure as the Scottish vote draws closer. International investors have already started to pull money out of the country on concerns of a victory for the yes to independence campaign headed by the Scottish National Party.
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,0.5599 ,
Canadian Dollar,,US Dollar,0.90779 ,
Canadian Dollar,,Euro,0.7010 ,
Canadian Dollar,,Australian Dollar,1.004,
Canadian Dollar,,New Zealand Dollar,1.1128 ,
US Dollar,,Canadian Dollar,1.1015 ,
Pound Sterling,,Canadian Dollar,1.7859 ,
Euro,,Canadian Dollar,1.4266 ,
Australian Dollar,,Canadian Dollar,0.9950,
New Zealand Dollar,,Canadian Dollar,0.8984 ,
[/table]
