The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has been trending in a narrow range at the beginning of Thursday’s European session ahead of the Organisation of the Petroleum Exporting Countries (OPEC) meeting.
The price of oil has also dropped in anticipation of the summit which could see oil production cut to quell the global surplus. However, Saudi Arabia has already stated that it isn’t willing to cut production in order to encourage a better rate.
Russia, Mexico and Venzuela have also stated they are unwilling to cut production, which could lend to an interesting few days for the ‘Loonie’ commodity currency as the meeting takes place.
One delegate commented: ‘It might take a bit longer than the ordinary meetings. They must agree, even if they have to stay here for two days.’
OPEC Meeting Speculation Causes Canadian Dollar Exchange Rate Losses
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate had seen a market movement of +0.31% towards the end of the final day before the OPEC meeting. With speculation mounting about the outcome of the summit, oil prices and the Canadian Dollar were both trending lower.
UAE oil minister Suhail bin Mohammed al-Mazroui commented: ‘This is not a crisis that requires us to panic… we have seen (prices) way lower.’
Earlier in the session… The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate continued to trend higher in Wednesday’s session ahead of the OPEC meeting in Vienna on Thursday.
A pre-OPEC summit saw Venezuela, Saudi Arabia, Mexico and Russia state that they would operate a system to monitor prices each quarter, but wouldn’t cut production. Geopolitical analyst Richard Mallinson commented: ‘All these countries are significantly affected by lower prices and want to see cuts, but it is a big step between having these talks and taking actual coordinated action to achieve this.’
Crude Oil Price Uncertainty affects Canadian Dollar Exchange Rate
Earlier in the session… The Pound to Canadian Dollar (GBP/CAD) exchange rate has been trending higher after more oil uncertainty ensured the ‘Loonie’ commodity currency was pressured lower.
The Canadian Dollar has had a tough time of late with oil prices depreciating at a swift rate due to a global surplus. The Organisation of the Petroleum Exporting Countries (OPEC) is scheduled to meet on November 27th to discuss a possible cut to oil production.
OPEC Tensions Weigh on Canadian Dollar (CAD) Exchange Rate
However, the run-up to the OPEC meeting hasn’t been particularly smooth. Saudi Arabia announced in the last few weeks that it would be cutting its oil costs—a development that saw the Canadian Dollar fall. Moreover, Wednesday has seen the Canadian Dollar feel the effects of Saudi Arabia’s oil minister Ali Al-Naimi stating that he believed a cut in oil production was unnecessary—despite the global surplus pushing prices lower.
Ali Al-Naimi stated: ‘No one should cut and market will stabilise itself.’
Oil prices have depreciated by a massive 30% since June 2014 and as a result have now dropped to the lowest level in over four years. Venezuela, Saudi Arabia, Mexico, Russia have all stated they will implement a quarterly monitoring system to regulate oil prices.
Commodity expert Tariq Zahir commented: ‘Even those four countries are not agreeing to any kind of cut, the last thing the Saudis want is to be the ones doing all the cutting. You have to get an above 2-million barrel cut from OPEC to stabilise the market.’
UK Gross Domestic Product (GDP) Figures in Line with Forecasts
Meanwhile, UK Gross Domestic Product (GDP) figures fell in line with economists’ forecasts at 3.0% on the year in the third quarter. However, UK Exports contracted by -0.4%, more than the -0.1% economists’ had forecast. In addition, Imports stats showed an increase of 1.4% in the third quarter as opposed to the 0.7% prediction.
Pound to Canadian Dollar (GBP/CAD) Exchange Rate Forecast
The Pound to Canadian Dollar exchange rate may move more significantly when the UK CBI Reported Sales figures are published later in Wednesday’s session. With very little Canadian data out until Friday, Thursday’s OPEC meeting is likely to be the most influential factor for the Canadian Dollar exchange rate.
The Pound to Canadian Dollar (GBP/CAD) currency pair is presently residing at 1.7704, while the CAD/GBP exchange rate is trending in the region of 0.5649.
Canadian Dollar (CAD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,Canadian Dollar , 1.7762,
US Dollar,,Canadian Dollar , 1.1272,
Euro,,Canadian Dollar , 1.4058,
Australian Dollar,,Canadian Dollar , 0.9666,
New Zealand Dollar,,Canadian Dollar , 0.8881,
[/table]
