The Pound Sterling to Canadian Dollar exchange rate is currently trending in the region of 1.7607, having declined by around -0.77%.
The recent by-election victory for the UK Independence Party has seen a second MP gain a seat. This has fuelled anxieties over the potential detriment to Sterling if Britain opts to leave the European Union.
Matthew Goodwin, professor of politics at the University of Nottingham, described a UKIP triumph as ‘very significant because it is six months out from a general election and in a pretty middle-of-the-road constituency.’
Earlier…
After an anti-European Union political party made strides towards gaining power, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate slumped. The Canadian Dollar, meanwhile, has advanced as a result of higher-than-anticipated inflation which has stoked speculation of a benchmark rate increase.
The Pound Sterling to Canadian Dollar exchange rate is currently trending in the region of 1.7578.
Pound Sterling (GBP) Dives on UKIP Progress
The UK Independence Party is controversial for a number of reasons, not least for their anti EU stance. A recent by-election saw a second UKIP MP gain a seat, showing that the party is gaining in support. Traders have reacted unfavourably to this prospect, arguing that leaving the EU could be damaging to the Pound.
George King, portfolio strategist at RBC Wealth Management, stated; ‘At the beginning of the year we were cautious on emerging markets because of elections in key markets. Ironically … just as the political risk stream in emerging markets begins to ameliorate, we see it beginning to rise in the United Kingdom,’ he said. ‘We are not trying to (predict the outcome of the election) … all we are saying is that if the risk isn’t priced in, we should be aware of that and decide what to do.’
The Pound Sterling to Canadian Dollar exchange rate has dropped to a low today of 1.7538.
Canadian Dollar (CAD) Advances on CPI
Canadian economic data has printed above expectations on Friday, allowing the ‘Loonie’ (CAD) to strengthen against most of its major peers. The Consumer Price Index increased beyond the market consensus of a rise from 2.0% to 2.1%, but the actual result reached 2.4%. In addition, the Core CPI eclipsed the median market forecast of 2.1%, with the actual result advancing to 2.3%.
The Bank of Canada has set a 2.0% inflation target, and the recent data has advanced beyond that target. Therefore, traders have been speculating that the central bank will have to increase the bank rate in order to accommodate for increased inflation.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast to Strengthen
After traders have digested the recent UKIP by-election victory, the Pound is likely to gain a little against its major peers. Additionally, if the US Dollar continues to decline, the Canadian Dollar could potentially track those losses.
The Pound Sterling to Canadian Dollar exchange rate has reached a high today of 1.7756.
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,0.5681 ,
Canadian Dollar,,US Dollar,0.8905 ,
Canadian Dollar,,Euro,0.7181 ,
Canadian Dollar,,Australian Dollar,1.0262,
Canadian Dollar,,New Zealand Dollar,1.1297 ,
US Dollar,,Canadian Dollar,1.1228 ,
Pound Sterling,,Canadian Dollar,1.7602 ,
Euro,,Canadian Dollar,1.3929,
Australian Dollar,,Canadian Dollar,0.9745 ,
New Zealand Dollar,,Canadian Dollar,0.8854 ,
[/table]
