Despite Canadian Gross Domestic Product data improving upon forecast figures, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate strengthened by around 0.20%. This can be attributed to mounting anxieties regarding the OPEC decision to maintain the current rate of oil production.
The Pound Sterling to Canadian Dollar exchange rate is currently trending in the region of 1.7861.
Earlier…
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has been trending higher early in Friday’s session as commodity prices tumbled catalysed by crude oil depreciation.
The Organisation of the Petroleum Exporting Countries (OPEC) met in Vienna on Thursday 27th to discuss the possibility of cutting oil production. A recent global surplus has seen the value of crude oil decline—a development that offered little support to the Canadian Dollar.
Pre-OPEC Meeting Indicated Production Cuts Unlikely
However, before the OPEC meeting, countries such as Mexico, Venezuela, Russia and Saudi Arabia stated that they were unwilling to cut production—a development that offered some insight into how the meeting may go.
The summit saw nations of OPEC decide to keep oil production at the same level, with the hope that the market will stabilise itself. One reason for the global surplus is larger amounts of shale oil production from the US. However, with crude producers refusing to drop prices, will shale companies run into trouble?
Oil Analyst Neil Beveridge commented: ‘While production growth is very strong [in North America], remember if you look at the debt situation for a lot of these companies, there is a lot of distressed debt. $68 a barrel is not economical for a lot of these shale oil wells. CDS [credit default swap] spreads and yields on some of the debt are rising very quickly, because at these kinds of oil prices you are going to see producers go bankrupt.’
UK Consumer Confidence Remains Low in Run-Up to General Election
Meanwhile, the UK saw Consumer Confidence remain at -2 in November, despite being forecast to rise to -1. In the run-up to the general election in May 2015, UK politics have been uncertain and the Pound has reacted sensitively to any developments. GFK who undertake the survey has suggested that low Consumer Confidence is likely to persist until the election.
GFK spokesperson Nick Moon stated: ‘The government will be hoping to go into the general election on a rising tide, and there is clearly scope for this. But unless the public gets another burst of good economic news it’s hard to see this happening anytime soon.’
Pound to Canadian Dollar (GBP/CAD) Exchange Rate Forecast
The Pound to Canadian Dollar (GBP/CAD) exchange rate is likely to fluctuate during Friday’s session with the release of Canadian Gross Domestic Product (GDP) figures still to come. Any unfavourable GDP ecostats could see the ‘Loonie’ exchange rate pressured even lower.
In the meantime, the GBP/CAD currency pair will rely on global developments and the resounding effect of the OPEC meeting for movement.
The GBP/CAD exchange rate is presently trending in the region of 1.7864, while the CAD/GBP currency pair reaches 0.5603.
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 , 1.7870,
US Dollar,,Canadian Dollar , 1.1382,
Euro,,Canadian Dollar , 1.4166,
Australian Dollar,,Canadian Dollar , 0.9696,
New Zealand Dollar,,Canadian Dollar , 0.8932,
[/table]
