The Pound (GBP) to Canadian Dollar (CAD) exchange rate was steady in a quiet trading session as the Canadian financial markets were closed for the Thanksgiving Holiday and a lack of economic data releases from the UK.
Markets were also closed in the USA for the Columbus Day national holiday and Asian markets were quiet due to the closure of the Japanese market because of the Health and Sports Day national holiday.
Sentiment towards the Pound came under some pressure early in the session after a report released by the accountancy and services group BDO showed that growth expectations amongst the UK’s manufacturers fell by its steepest margin since May 2013. Optimism in general also dipped as the weakness of the Eurozone weighs upon demand.
BDO’s manufacturing index, which records growth expectations over the next three months, fell from 113.2 in August to 111.6 in September. In the report, any figure above 100 indicates growth.
‘With global conditions becoming increasingly challenging, it was only a matter a time before the stellar increases in economic growth recorded earlier this year came to an end. Given their reliance on exports, manufacturers have borne the brunt of weakening global demand but the effects of stuttering worldwide growth are obvious throughout the economy,’ said BDO partner Peter Hemington.
Market sentiment improved on Monday after news broke that Russian President Vladimir Putin ordered thousands of troops to withdraw from the Ukrainian border. According to Mr Putin’s spokesperson up to 17,600 soldiers that had been on training exercises would be returned to bases.
The move was seen as a positive by economists as it could ease tensions between the West and Russia. Retaliatory sanctions between both sides have been partly blamed for the slowdown in the global economy.
Pound to Canadian Dollar Exchange Rate Forecast
The Pound’s strength will all depend on whether this week’s UK economic data comes in positively and eases some of the worries that the nation’s economy is slowing. Of particular interest will be Tuesday’s Inflation data and Wednesday’s
Average Earnings reports. Unemployment data is also due and is forecast to fall again from 6.2% to 6.1%.
The Canadian Dollar meanwhile is expected to remain under pressure from concerns over the global economy and from falling commodity prices. Weakening oil prices in particular will weigh as the commodity is Canada’s biggest export.
UPDATE
The Pound Sterling to Canadian Dollar exchange rate is currently trending in the region of 1.8031.
The Pound to Canadian Dollar exchange rate is currently holding its position as traders await the British inflation data due later on Tuesday. Inflation has been highlighted by the Bank of England as the principle obstacle holding back a tighter monetary policy. Those invested in the Pound will be hoping that inflation better correlates with wage growth.
An absence of Canadian data on Tuesday is likely to see the ‘Loonie’ (CAD) depreciate against its most traded currency competitors.
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,0.5549 ,
Canadian Dollar,,US Dollar,0.8927 ,
Canadian Dollar,,Euro,0.7027 ,
Canadian Dollar,,Australian Dollar,1.0176,
Canadian Dollar,,New Zealand Dollar,1.1336 ,
US Dollar,,Canadian Dollar,1.1199 ,
Pound Sterling,,Canadian Dollar,1.8015 ,
Euro,,Canadian Dollar,1.4202 ,
Australian Dollar,,Canadian Dollar,0.9822 ,
New Zealand Dollar,,Canadian Dollar,0.8807 ,
[/table]
