The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trading in the region of 1.8368 on Sunday having softened over the course of the previous week.
Sterling lost ground against almost all of its peers as UK data fell short and the Canadian Dollar was bolstered by an upbeat Royal Bank of Canada Manufacturing PMI report.
The manufacturing gauge jumped from 53.5 to 54.3, pushing further above the 50 mark separating growth from contraction.
The report detailed rising staffing levels, increases in new order growth and the steepest improvement in business conditions until the close of 2013.
In a statement issued with the figures, industry expert Cheryl Paradowski remarked; ‘Canadian manufacturers have made a bright start to the third quarter of 2014, as highlighted by stronger production growth and another improvement in sales volumes during July. Therefore, the latest survey suggests a decisive shift towards faster growth across the manufacturing sector this summer’.
Paradowski continued; ‘Moreover, business conditions are improving against a backdrop of softening cost pressures, which in turn contributed to the slowest increase in manufacturers’ output charges since the end of 2013.’
While the Pound Sterling to Canadian Dollar exchange rate fell, the ‘Loonie’ didn’t perform so well against the US Dollar.
The ‘Greenback’ broadly advanced as the US outperformed all expectations with its second quarter GDP figures.
Pound Sterling to Canadian Dollar Exchange Rate Forecast
While UK data is likely to have an impact on the Pound to Canadian Dollar exchange rate this week, there are several economic reports due out from Canada that are forecast to influence the direction taken by the GBP/CAD pairing.
Monday and Tuesday are free of Canadian data, but Wednesday sees the release of the nation’s International Merchandise Trade report. This will be followed on Thursday by Canada’s Building Permits figures for July and the seasonally adjusted Ivey Purchasing Managers Index.
The week’s most extensive Canadian Dollar market movement can be expected to take place on Friday as Canada publishes its employment figures for July. A strong employment gain could give the Canadian Dollar a boost.
The UK reports of note include British Construction, Services and Composite PMI, UK Industrial/Manufacturing production figures, the NIESR GDP estimate for July and Construction Output data. The Bank of England is also due to issue its interest rate decision.
As the ‘Loonie’ is a commodity-driven currency, fluctuations in the Pound Sterling to Canadian Dollar exchange rate could also occur in response to China’s Services PMI and Trade figures.
Comments are closed.