The Pound Sterling to US Dollar (GBP/USD) exchange rate declined by around -0.37% and the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate gained by around 0.30% on Thursday afternoon.
With the general election dominating trader focus, the Pound fluctuated versus most of its major peers on Thursday. The most recent opinion polls showed no clear majority which amplified Sterling volatility amid fears of a massive policy overhaul.
The US Dollar halted a long period of bearishness after domestic labour market data provided positive results. Of particular note was Jobless Claims, which remained close to a 15-year low. Unemployment also saw a positive declination.
The ‘Loonie’ (CAD) exchange rate softened despite soaring domestic building permits. The depreciation can be linked to crude futures cooling amid jitters on oversupply.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5185.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 1.8427.
Pound Sterling (GBP) Exchange Rate Forecast to Fluctuate versus its Major Peers amid General Election Jitters
As British citizens crowd into polling stations, traders are showing just how uncertain the political future will be as the Pound fluctuates significantly versus its major peers. Opinion polls are producing varied results with no clear majority for any party. With the result not due until Friday afternoon, the Pound is likely to be subject to heightened volatility.
Domestic data had minimal impact on Sterling movement with the general election dominating investor focus. April’s New Car Registrations advanced by 5.1% on the year, down from the previous figure of 6.0%.
US Dollar (USD) Exchange Rate Forecast to Climb against many of its Currency Rivals in Response to Positive Labour Data
After US labour market data printed positively, the ‘Greenback’ (USD) advanced versus the majority of its most traded currency rivals. The results are very much in contrast to recent weeks which saw poor publication after poor publication, causing futures traders to pare bets as to the timing of a Federal Reserve rate hike.
Continuing Claims saw 2.2 million claimants; down from the median market forecast 2.27 million claimants. In addition, Initial Jobless Claims came in under the market consensus of 279,000 with the actual result hitting 265,000.
‘Claims at these types of levels would be consistent with a strong payroll number,’ said Ray Stone, an economist at Stone & McCarthy Research Associates. Jobless claims ‘are the most timely indicator of labour-market conditions, so on the margin things look pretty good.’
Canadian Dollar (CAD) Exchange Rate Forecast to Soften versus Most of its Major Rivals as Oil Futures Slide
Canadian economic data printed positively on Thursday, but this had minimal impact on ‘Loonie’ movement. On the month, March’s Building Permits advanced by 11.6%; completely eclipsing the market consensus of a 2.0% increase.
The Canadian Dollar declination can be attributed to crude futures sliding amid fears of oversupply. ‘While the latest draw and the recent slowdown in weekly builds in crude stocks have been seen as positive for the oil price, crude stocks remain exceedingly high,’ said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the parameters of 1.5162 – 1.5253.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending within the range of 1.8312 – 1.8465.
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