Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Softer before CPI
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending over 0.2% lower on Friday as investors awaited the publication of the UK’s public borrowing figures and Canada’s Consumer Price Index.
The Non-Core Consumer Price Index is expected to register at 2.1% on the year, up from 2.0% the previous month.
A surprising result is likely to spark GBP/CAD volatility.
Earlier…
GBP/CAD Weaker after Wholesale Sales Data Published
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate continued trending in a slightly weaker position following the release of Canada’s wholesale sales figures.
Sales surged by 1.8% in September, month-on-month following revised stagnation in August. An increase of 0.8% had been anticipated.
According to Statistics Canada; ‘Wholesale sales rose 1.8% to $54.0 billion in September. While higher sales were recorded in six of the seven subsectors, accounting for 83% of total wholesale sales, the increase was led by the building material and supplies subsector (+5.5%). In volume terms, wholesale sales increased 1.8%.’
Earlier…
GBP/CAD Soft Despite Retail Sales Gain
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending around the day’s opening levels as the European session continued and failed to benefit from the unexpectedly strong increase in UK retail sales.
Although economists had forecast that retail sales would climb by just 0.3% on the month in October, they actually jumped by 0.8%.
This took the annual figure to 4.6% from 2.8%.
While the report was a solid indication of continued consumer confidence, Bank of England rate hike bets prevented the Pound from recording any sizeable gains.
Earlier…
GBP/CAD Exchange Rate Fluctuates
Yesterday the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate advanced following the release of the Bank of England’s (BoE) meeting minutes.
The minutes showed that the Monetary Policy Committee (MPC) remained split on the subject of interest rate increases.
This, and references to the potential building of inflationary pressures, helped the Pound post widespread gains.
The Canadian Dollar also came under pressure as the bill for the fast-tracking of the Keystone XL pipeline was rejected.
The vote was incredibly close, with the 59-41 in favour just falling short of the 60 votes needed.
The decision saw strategist Camilla Sutton state; ‘Accordingly the debate over the future of Keystone will be pushed into 2015, where a Republican controlled Senate might have a different outcome.’
However, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate pared its advance prior to the publication of the UK’s retail sales report.
US Dollar to Canadian Dollar softer after FOMC Minutes
The US Dollar to Canadian Dollar exchange rate posted a modest gain in response to the Federal Open Market Committee’s (FOMC) meeting minutes.
The minutes showed that the debate surrounding the timeline for increasing interest rates became a little livelier.
It was also revealed that the decision to conclude the US quantitative easing programme was easily arrived at.
The minutes stated; ‘A couple of others thought that the current forward guidance might be read as suggesting an earlier date of lift-off than was likely to prove appropriate, given the outlook for inflation and the downside risks to the economy associated with the effective lower bound on interest rates.’
GBP/CAD, USD/CAD Exchange Rate Forecast
The Pound Sterling to Canadian Dollar exchange rate could fluctuate in the hours ahead following the publication of the UK’s retail sales figures.
Meanwhile, the direction taken by the US Dollar to Canadian Dollar exchange rate is likely to be dictated by the US Consumer Price Index.
Canada’s Wholesale Sales figures could also have an impact on the Canadian Dollar’s performance.
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,0.5624,
Canadian Dollar,,US Dollar,0.8807,
Canadian Dollar,,Euro,0.7030,
Canadian Dollar,,Australian Dollar,1.0251,
Canadian Dollar,,New Zealand Dollar,1.1166,
US Dollar,,Canadian Dollar ,1.1349,
Pound Sterling,,Canadian Dollar,1.7772,
Euro,,Canadian Dollar,1.4208,
Australian Dollar,,Canadian Dollar,0.9748,
New Zealand Dollar,,Canadian Dollar,0.8896,
[/table]
