The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has softened on Wednesday despite the absence of Canadian data. This is as a result of disappointing British data. The Canadian Dollar, however, is struggling to rack up any significant gains thanks to the continued decline in global oil prices.
The Pound Sterling to Canadian Dollar exchange rate is currently trending in the region of 1.8210.
Wednesday’s British economic data has printed particularly disappointingly. The BRC Shop Price Index declined to -1.9%, instead of improving from -1.8% to -1.7%. The Composite PMI was expected to drop from 57.4 to 57, but the actual result dropped to 55.8. The Services PMI was forecast to tick slightly lower from 58.7 to 58.5, but the data showed a drop to 56.2.
Chris Williamson, Chief Economist at Markit, stated; ‘Slower service sector growth knocks the prospect of interest rate hikes firmly on the head, adding to an increasingly downbeat flow of economic data in recent weeks which has thrown a cloud of uncertainty over the outlook. A sharp easing of service sector growth to the weakest since May of last year comes on the heels of data showing construction growth sliding to a five-month low and the goods-producing sector shifting down a gear since earlier in the year.’
The Pound Sterling to Canadian Dollar exchange rate has fallen to a low today of 1.8188.
As the global price of oil declines amid soaring North American output, the Canadian Dollar has generally declined against the majority of its most traded rivals. ‘The near-term Canadian Dollar outlook has deteriorated materially and the downward trend is too strong to fight,’ stated Camilla Sutton, chief foreign-exchange strategist at Bank of Nova Scotia in Toronto.
Pound to Canadian Dollar (GBP/CAD) Exchange Rate Forecast to Recover
Although Wednesday’s British data has been poor, the GBP/CAD exchange rate should recover as oil prices continue to decline. However, both British and Canadian data on Thursday has the potential to provoke volatility.
The Pound Sterling to Canadian Dollar exchange rate has advanced to a high today of 1.8265.
UPDATE
GBP/CAD Exchange Rate Continues to Decline
The Pound Sterling to Canadian Dollar exchange rate is currently trending in the region of 1.8186.
Despite anxieties over global oil price cuts, the GBP/CAD exchange rate has extended losses to around -0.25%. This is likely to be as a result of continued issues regarding the less-than-impressive UK services data.
As traders await Wednesday’s US data, the GBP/CAD exchange rate is likely to continue to decline. Should the US economic data print below expectations, it is possible that the Pound will strengthen against the Canadian Dollar.
GBP/CAD Exchange Rate Rebounds on Low Oil Prices
The Pound Sterling to Canadian Dollar exchange rate is currently trending in the region of 1.8254.
Having rebounded from earlier losses the Pound to Canadian Dollar exchange rate has advanced by around 0.14%. This is likely to be attributed to continued anxieties regarding low global oil prices. OPEC members’ average crude price fell below $80 per barrel for the first time in four years as Saudi Arabia maintained output despite cooling demand.
‘Saudi Arabia seems to have other aims than protecting the price,’ Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, said by e-mail. ‘The Saudis’ attitude might only change if the other members agree to contribute to a cut, the likelihood of which is slim at best.’
GBP/CAD Exchange Rate Edges Higher on Global Oil Supply
The Pound Sterling to Canadian Dollar exchange rate is currently trending in the region of 1.8207.
As traders await the Bank of England interest rate decision the Pound is generally softening against the majority of its most traded currency rivals. With growth in the services sector slowing, most anticipate a dovish move from the BoE policymakers.
Although the price of oil has firmed up a little from lack of US supply, crude is still very much trading in a bear market. This is due to global supply far outweighing demand.
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,0.5497 ,
Canadian Dollar,,US Dollar,0.8738 ,
Canadian Dollar,,Euro,0.7003 ,
Canadian Dollar,,Australian Dollar,1.0139,
Canadian Dollar,,New Zealand Dollar,1.1301 ,
US Dollar,,Canadian Dollar,1.1443 ,
Pound Sterling,,Canadian Dollar,1.8191 ,
Euro,,Canadian Dollar,1.4277 ,
Australian Dollar,,Canadian Dollar,0.9860 ,
New Zealand Dollar,,Canadian Dollar,0.8845 ,
[/table]
