The Pound weakened against the Canadian Dollar on Wednesday after a report released by the Confederation of British Industry (CBI) showed that retail sales growth slowed in May.
According to the report, growth in the UK’s retail sector unexpectedly slowed in May as consumers stayed away from department stores and food sales fell. The likely cause for the slowdown was the fall in spending in the wake of the Easter holidays.
The data also showed that job creation in the sector stalled and internet sales increased at the slowest rate in almost a year.
“Retailers’ predictions of further sales growth bore fruit this month. Although that growth was at a slower rate than expected, the fact we’ve seen a steady increase for six consecutive months is a sign we’re heading towards sustainable growth and strengthening consumer optimism – and it’s good to hear shopkeepers telling us they expect even stronger figures next month,” said Barry Williams, from the CBI.
The Pound was also weakened by yesterday’s report from the British Bankers Association which showed that mortgage lending slowed this month.
GBP to CAD exchange rate is currently trading in the region of 1.8159
The Canadian Dollar moved higher against the Pound thanks to the weaker Sterling as domestic data releases are nonexistent until Friday.
The ‘Loonie’ also made gains against the US Dollar, climbing to its highest level in two-weeks as recent data releases which indicated that the US economy is improving increased demand for riskier assets.
Statistics Canada will release its gross domestic product data for March and the first quarter on Friday. Economists are looking for an annualized rise of 1.7% for the quarter and 0.1% for the month.
Canadian Dollar (CAD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Canadian Dollar,
,Pound Sterling,0.5511 ,
Canadian Dollar,,US Dollar,0.9212 ,
Canadian Dollar,,Euro,0.6770 ,
Canadian Dollar,,Australian Dollar,0.9986,
Canadian Dollar,,New Zealand Dollar,1.0827 ,
US Dollar,,Canadian Dollar,1.0852 ,
Pound Sterling,,Canadian Dollar,1.8159 ,
Euro,,Canadian Dollar,1.4767 ,
Australian Dollar,,Canadian Dollar,1.0026 ,
New Zealand Dollar,,Canadian Dollar,0.9272 ,
[/table]
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