GBP/CAD Exchange rate Looks Set to Slide if Canadian Employment Growth Impresses
The Pound Canadian Dollar (GBP/CAD) exchange rate is holding steady this morning as markets appear the release of some high impact Canadian data later this week.
At the time of writing the GBP/CAD exchange rate is virtually unchanged from the morning’s opening levels.
Can Robust Rise in Employment Help to Lift the Canadian Dollar (CAD) Exchange Rate?
The Canadian Dollar (CAD) looks poised to rally at the end of this week’s session, with the publication of Canada’s latest labour report.
While Canada’s unemployment rate is expected to remain flat at a 42-year low of 5.8%, economists are forecasting a solid rise in employment growth, with Canada’s workforce expected to have expanded by 24,000 in June after sliding by 7,500 the previous month.
A heathy rise in employment could lend considerable strengthen to the ‘Loonie’ tomorrow, with hopes that a tightening labour market will help to spur wage growth in the coming months.
However potentially denting any gains in the Canadian Dollar of Friday will be the accompanying release of Canada’s trade balance figures, with economists forecasting that the domestic trade deficit will have swelled again in May.
Sterling (GBP) Exchange Rate to Rise on Brexit Breakthrough at Chequers?
Meanwhile any further gains in the Pound (GBP) exchange rate this week are likely to be reliant upon the outcome of a UK cabinet meeting at Chequers on Friday.
The meeting will see Theresa May attempt to wrangle her cabinet into finalising a Brexit whitepaper which can be presented to the EU.
This may be easier said than done however, with her party appearing split on how hard the split from the EU should be, with the failure to reach an agreement likely to bolster Brexit uncertainty and drag on the Pound.
GBP/CAD Exchange Rate Forecast: Will the BoC Deliver a Rate Hike Next Week?
Looking ahead, next week’s session could see considerable movement in the Pound Canadian Dollar (GBP/CAD) exchange rate as the Bank of Canada (BoC) holds its July policy meeting.
The BoC is wildly expected to vote to raise interest rates at this month’s meeting, with markets odds of a hike currently at around 80%.
This is likely to see a considerable lift in the Canadian Dollar, although its gains could be capped slightly should the bank appear a little more cautious about the possibly of implementing any further hikes.
Meanwhile GBP investors will be left to focus on the UK’s latest trade figures next week, with the Pound potentially strengthening if the trade deficit narrows as expected in May.
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