Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was little-changed on Monday as those few data releases scheduled for publication failed to produce any market-altering shifts.
The UK’s Lloyds Employment Confidence measure did rally to 6 from 1 but the report had no bearing on the strength of the Pound.
Last week the Canadian Dollar lost ground against the majority of its most-traded currency counterparts as Canada’s employment figures produced a mixed response from investors.
Although the headline unemployment rate declined, investors chose to dwell on the fact that the increase in employment was led by part-time positions and that the Canadian participation rate slid.
35,400 people left the Canadian workforce in July, taking the nation’s participation rate from 66.1% to 65.9% in June. This was the lowest participation rate recorded since 2001.
The data makes it increasingly likely that the Bank of Canada will be maintaining a dovish stance for the foreseeable future and prompted this response from economist Paul Ashworth; ‘Canada is rapidly becoming a nation of part-timers. Over the past 12-months, full time employment has actually declined by a cumulative 3,100, while part-time employment has increased by 118,500.’
The Pound to Canadian Dollar exchange rate moved between highs of 1.8428 and lows of 1.8374.
Little movement in the GBP to CAD exchange rate was occasioned by Canada’s Housing Starts figures.
Canadian Housing Starts were shown to have increased by more than anticipated in July. Housing starts came in at a seasonally adjusted 200,098, up from a positively revised reading of 198,700 in June.
Economists had anticipated a reading of 193,000.
This report is the latest in a series of signs that the Canadian housing market might not be cooling to the extent forecast by some industry experts.
In a statement published with the figures the Canada Mortgage and Housing Corporation (CMHC) asserted; ‘The trend in construction has increased modestly in recent months due to in large part to multiple starts, which have strong variability from month-to-month. Nevertheless, CMHC continues to expect a soft landing for the new home construction market in Canada.’
Today’s Pound Sterling to Canadian Dollar Exchange Rate Forecast
In the days ahead more notable movement in the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate could be occasioned by Canada’s New Housing Price Index, the nation’s Manufacturing Shipments figures and Existing Home Sales reports.
That being said, movement in the Pound Sterling to Canadian Dollar exchange rate is more likely to be occasioned by the week’s influential UK news, including the publication of the Bank of England’s inflation report and the UK’s employment figures.
Disappointing UK data could see the Pound soften against the ‘Loonie’, but a surprise to the upside could give the British currency a boost.
UPDATED 15:25 GMT 12 August, 2014
GBP to CAD Unmoved due to Lack of Domestic Data
The Pound Sterling to Canadian Dollar exchange rate is trending in the region of 1.8363.
Despite Canada posting better-than-expected Canadian housing data, the difference between the current rate of the GBP/CAD pairing and that recorded at the close of yesterday is negligible. This is due to a lack of domestic data affecting either currency.
Tomorrow will see greater movement with several UK domestic labour data due for release.
‘Loonie’ (CAD) movement is likely to be increased on Friday with the year-on-year New Housing Price Index due for publication.
Both the Pound and the Canadian Dollar will be affected by ongoing geopolitical tensions as military presence increases across the globe.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has seen a low today of 1.8322 and a high of 1.8375
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,0.5436,
Canadian Dollar,,US Dollar,0.9127,
Canadian Dollar,,Euro,0.6817,
Canadian Dollar,,Australian Dollar,0.9848,
Canadian Dollar,,New Zealand Dollar,1.0815,
US Dollar,,Canadian Dollar ,1.0950,
Pound Sterling,,Canadian Dollar,1.8392,
Euro,,Canadian Dollar,1.4667,
Australian Dollar,,Canadian Dollar,1.0151,
New Zealand Dollar,,Canadian Dollar,0.9276,
[/table]
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