Monday’s British Data has been generally poor which has caused Sterling to depreciate against the majority of its most traded currency competitors. A complete absence of Canadian data has seen the ‘Loonie’ (CAD) trending lower, although any massive declination has been halted by a powerful US Dollar.
The Pound Sterling to Canadian Dollar exchange rate is currently trending in the region of 1.8121.
Having declined massively in the build up to the Scottish independence referendum Sterling gained a massive boost from the Unionist victory. A further surge in demand was thanks to a hawkish speech by Bank of England Governor Mark Carney on Thursday, in which he said that most of the prerequisites for normalising monetary policy have now been met.
With very little by way of Canadian economic data last week the Canadian Dollar declined as geopolitical tensions increased. Huge losses were avoided, however, as the ‘Loonie’ tracked the progress of a bullish US Dollar.
The Pound Sterling to Canadian Dollar exchange rate has hit a low today of 1.8075.
Monday’s British domestic data has been disappointing for those invested in Sterling. The BoE Consumer Credit was expected to fall from £1.108 billion to £0.85 billion, but the actual data saw a decline to £0.898 billion. Mortgage Lending was forecast to dip from £2.34 billion to £2.3 billion, but the actual data dropped to £2.28 billion. Mortgage Approvals defied the market consensus of a jump from 66, 100 to 69, 000 with the actual result plummeting to 64, 210.
Once again, a complete absence of Canadian data on Monday has caused the ‘Loonie’ to depreciate against the majority of its most traded currency peers.
Canada’s second largest natural gas producer, Encana Corp., agreed to buy Athlon Energy Inc. for US$5.93 billion, which has enabled them to gain a foothold in the most prolific US oil producing region. The potential boost for the Canadian economy has seen the Canadian Dollar hold its position against many of its currency peers despite an absence of economic data.
Forecast for the Pound Sterling to Canadian Dollar Exchange Rate
With very little Canadian data this week it is likely that the GBP/CAD exchange rate will continue to hold in a relatively high position. Should the US Dollar maintain its current bullish behaviour it is unlikely that the Canadian Dollar will depreciate massively. Several influential British data reports during the week are likely to spark Sterling volatility.
The Pound Sterling to Canadian Dollar exchange rate has reached a high today of 1.8144.
UPDATE
The Pound Sterling to Canadian Dollar exchange rate climbed slightly on Tuesday as investors reacted to the UK’s positively revised growth figure for the second quarter.
The 0.9% quarter-on-quarter expansion was better than original forecasts of 0.8% growth.
Economists can expect additional GBP/CAD movement to follow the release of Canada’s own growth data for July. The Canadian economy is believed to have grown by 0.3% on a month-on-month basis in July.
