As traders await the UK inflation data on Tuesday morning, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate declined by around -0.22%. After Bank of England Governor Mark Carney voiced his concern over the possibility of disinflation, the Pound endured further declination amid a bearish run. The Consumer Price Index is forecast to equal the previous figure of 1.2%.
A complete absence of Canadian data will see the ‘Loonie’ (CAD) subject to changes due to foreign currency movement. However, as oil continues trading in a bear market, the Canadian Dollar will depreciate from less demand.
The Pound Sterling to Canadian Dollar exchange rate is currently trending in the region of 1.7625.
Yesterday…
While traders wait for the publication of Monday’s Canadian data, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has remained relatively static. British housing data, meanwhile, produced mixed results which have seen the Pound generally soften against its most traded currency rivals.
The Pound Sterling to Canadian Dollar exchange rate is currently trending in the region of 1.7688.
Mixed British Data sees Sterling (GBP) Soften
A sparse economic calendar, in terms of British data, has seen the Pound continue trending on a bearish course. Yearly Rightmove House Prices declined from 2.6% to -1.7% on a month-on-month basis but increased from 7.6% to 8.5% on the year.
Miles Shipside, Rightmove director and housing market analyst stated; ‘Underlying demand remains strong but has been muted by higher prices stretching affordability at the same time as the ability to borrow more to fund those higher prices has been curtailed by tighter mortgage lending criteria. After an active year it’s a sensible pause and, with the winter months approaching, sellers are hoping a cheaper asking price may spur those scarcer buyers into action.’
The Pound Sterling to Canadian Dollar exchange rate has dropped to a low today of 1.7665.
Uncertainties regarding Oil Prices see ‘Loonie’ (CAD) Struggle
Intense fluctuations in global oil prices have caused the Canadian dollar to struggle to sustain any significant gains against its major peers. Compounding the difficulties has been a softening US Dollar as the ‘Loonie’ (CAD) tracks the movement of its neighbouring currency.
‘The market is under incredible pressure and it will stay that way until OPEC takes decisive action,’ Rob Haworth, a senior investment strategist in Seattle at U.S. Bank Wealth Management said by phone Nov. 13. ‘There has to be something that changes the story, which is that there’s too much supply.’
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast to Strengthen
Given that Monday’s Canadian data is of little consequence to wider market movement, and US data is forecast to decline, it is likely that the GBP/CAD exchange rate will strengthen. Sterling is also likely to remain under pressure ahead of Tuesday’s inflation data.
The Pound Sterling to Canadian Dollar exchange rate has advanced to a high today of 1.7740.
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,0.5651 ,
Canadian Dollar,,US Dollar,0.8838 ,
Canadian Dollar,,Euro,0.7077 ,
Canadian Dollar,,Australian Dollar,1.0129,
Canadian Dollar,,New Zealand Dollar,1.1173 ,
US Dollar,,Canadian Dollar,1.1313 ,
Pound Sterling,,Canadian Dollar,1.7691 ,
Euro,,Canadian Dollar,1.4129,
Australian Dollar,,Canadian Dollar,0.9872 ,
New Zealand Dollar,,Canadian Dollar,0.8950 ,
[/table]
