The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has stabilised since yesterday’s dive, and is currently trending in a narrow range.
Canadian Dollar to Pound Sterling (CAD/GBP) Exchange Rate to be decided by US Data
The Pound Sterling (GBP) has fallen by -0.3% against the Australian Dollar (GBP/AUD) today, and has seen worse losses of -0.7% against the Russian Ruble (GBP/RUB). However, the Pound has also gained by 0.3% against the Swedish Krona (GBP/SEK) and the Turkish Lira (GBP/TRY). This mixed performance comes after the UK Visible Trade figure for June showed an increase to -£9.1bn in the UK Trade deficit, which was still an improvement over the forecast -£9.3bn expansion.
The performance of the Canadian Dollar (CAD) today is to be determined by the US July Change in Non-Farm Payrolls data, which will likely affect whether the US interest rate increases this year. Should a large growth be recorded, the Canadian Dollar (and other commodity currencies) will probably plunge, but they may likewise rise in value if the US data shows a disappointing slowdown in the US economy. Canadian July Employment figures are due out at the same time as the US results, but the effects of the former data are likely to be overshadowed by the latter.
Earlier…
The Pound Sterling (GBP) has fallen across the board today after only one member of the Bank of England (BoE) Monetary Policy Committee (MPC) voted in favour of a UK interest rate increase.
Pound Sterling to Canadian Dollar Exchange Rate News: Worse Minutes Results than Expected see GBP/CAD Nosedive
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate plunged by as much as -0.8% today after the minutes from the BoE MPC meeting were released. As expected, the UK interest rate remained at 0.5%, but instead of showing a two to three person vote in favour of an interest rate increase, only one vote from Ian McCafferty was made in favour of an interest rate hike.
The Pound (GBP) fell by over -0.6% against the Euro (GBP/EUR), the US Dollar (GBP/USD) and the South African Rand (GBP/ZAR), and saw a greater loss of over -0.8% against the New Zealand Dollar (GBP/NZD). The performance of the Pound against these commodity currencies at a time when commodity prices are in crisis shows the level of pessimism for the Pound in the reaction to this news. The only major gain for the Pound was a 1.6% increase against the unstable Russian Ruble (GBP/RUB).
Canadian Dollar to Pound Sterling (CAD/GBP) Exchange Rate Soars Despite Six-Year Low for Crude Oil Prices
The Canadian Dollar (CAD) has gained by 0.8% against the Pound Sterling (CAD/GBP) today, after disappointment over the BoE MPC vote sent the Pound (GBP) down against all major competitors. Despite this gain and a 0.4% rise against the Australian Dollar (CAD/AUD), the ‘Loonie’ has otherwise trended in a narrow range.
The mixed performance comes after the price of crude oil hit its lowest point since 2009 today and ahead of the US July Change in Non-Farm Payrolls data due for tomorrow. Any increase in this figure above estimates could send the Canadian Dollar into a downwards slump, as the Fed would be given another reason to raise the US interest rate; this would hurt the price of global commodities, especially crude oil.
Pound Sterling to Canadian Dollar Exchange Rate Forecast: CAD/GBP Gains may not last after Pound Stabilises
Although today has been catastrophic for the value of the Pound Sterling (GBP), the decline in value may largely be the expected knee-jerk reaction that comes with any major economic data release. At any rate, it seems unlikely that the ‘Loonie’ (CAD) will hold its grasp over the Pound (CAD/GBP). The Canadian currency has been continuously damaged by the fall in oil prices, and although the Canadian July Net Change in Employment figure is forecast for a 9.8k increase tomorrow, this may be due to temporary Summer jobs and therefore not indicative of genuine long-term growth in the Canadian economy.
Current GBP, CAD Exchange Rates
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending in the region of 2.0401 and the Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate was trending in the region of 0.4907 today.
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