The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate strengthened on Friday as the ‘Loonie’ was weakened by another fall in oil prices and as economists turn their attention to upcoming Canadian employment data.
Since the middle of the summer crude oil prices have fallen by around 35% because of weakened demand and an oversupply caused increased productivity in the USA. The Energy Information Administration released a report showing that oil reserves have increased by 9% to make a fifth consecutive year of rises.
As crude oil is Canada’s most exported commodity the sharp falls in oil prices have had a negative impact upon the ‘Loonie’. Today’s move by Saudi Arabia to offer Asian customers record discounts on its oil prices, increasing speculation that the Arab nation is taking measures to defend its market share.
Prices also continued to be weighed upon after the Organisation of Petroleum Exporting Countries (OPEC) chose to maintain its output quota in what appears to be a move to force the US oil producers to slow down production.
‘It seems what the Saudis want, the Saudis are going to get, and we’re going to see prices continue to be under pressure. It is still game on,’ said Phil Flynn a senior market analyst.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is forecast to experience volatility later in the session as economist awaits the release of Canadian balance of trade and employment data.
Some economists are forecasting that the nation’s unemployment rate will increase from the 6.5% recorded in October to 6.6% last month.
The Pound gave up some earlier gains after the latest BoE GFK inflation expectations report fell. The report showed that 2-year expectations fell from 2.85% to 2.5%.
The Pound Sterling to Canadian Dollar Exchange Rate
The Pound Sterling to Canadian Dollar hit a session low of 1.7795
The Pound Sterling to Canadian Dollar hit a session high of 1.7881
The Pound Sterling to Canadian Dollar is trading in the region of 1.7874
