The Pound Canadian Dollar exchange rate has risen moderately during trading today, but the future could see the CAD GBP rebound.
While commodity price shifts may have lessened initial demand for the Canadian Dollar, they are still expected to play a key role in CAD demand moving ahead.
Pound Gains on Slow Data Day, Profit Taking Weakens Canadian Dollar
While Monday has been devoid of major UK data, the Pound Canadian Dollar exchange rate has nonetheless managed to advance by 0.3%.
The latest UK developments have been mixed; on the negative side, the British Chambers of Commerce (BCC) have estimated that UK growth will slow in 2017, in spite of recent optimism after the June 23rd EU Referendum outcome.
More supportively, the idea has been floated that the UK could act first in Brexit negotiations and allow EU citizens to remain in the UK after Brexit finally occurs. The hope among supporters of this idea is that EU nations will repay the UK in kind, thereby removing one of the great uncertainties of the post-Brexit relationship between the UK and the EU.
For Canada, the day’s big news has been the price of crude oil, which has risen once again. While crude costs initially soared at the end of November when OPEC agreed to cut oil production, the price since dropped off during to waning market interest.
The latest upwards jolt in crude costs has come from non-OPEC members agreeing to a cut, which has bumped prices again and led to mass profit-taking in the CAD. This has had the net effect of producing negative interest in the Canadian Dollar.
Pound Outlook: Agreements with EU over Citizen Rights Likely to Bolster GBP CAD Demand
When it comes to future Pound-influencing factors, the Government’s actions on UK-EU relations in the future are sure to be in focus.
If the Government responds positively to current proposals to extend the olive branch to the EU and its citizens in the UK, Sterling is expected to appreciate heavily, as it will set a positive tone for further negotiations on Brexit.
Should this idea get lost in the pipeline, however, the Pound Canadian Dollar exchange rate could well sink, owing to the returning concern that the Government does not have a proper grasp on how to go about taking the UK out of the EU.
Canadian Dollar Future Forecast: Oil Price Rebound could Still Return CAD to Glory
The next source of influence for the Canadian Dollar is likely to be the continually fluctuating price of oil.
The latest boost has been triggered by more countries agreeing to cut oil production, so it stands to follow that further news in this vein may once again bump crude demand and raise CAD value as a result.
Recent Interbank Exchange Rates
At the time of writing, the Pound Sterling Canadian Dollar (GBP CAD) exchange rate was trending in the region of 1.66 and the Canadian Dollar Pound Sterling (CAD GBP) exchange rate was trending in the region of 0.60.
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