The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate regained ground later on Thursday after oil prices declined once again. A supply glut of Canada’s most traded commodity has lowered prices and as a result the ‘Loonie’ has been knocked lower.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate softened earlier on Thursday as the ‘Loonie’ received support from rising oil prices and the decision by the Canadian central bank to maintain interest rates at 1%.
As Wednesday’s session progressed the Pound to Canadian Dollar (GBP/CAD) exchange rate firmed after Sterling was supported by positive PMI data. Further gains were restrained however after the Bank of Canada chose to leave interest rates unchanged at 1%.
The Pound to Canadian Dollar (GBP/CAD) exchange rate was trading in a tight range on Wednesday as positive UK data supported Sterling and rising oil prices bolstered the ‘Loonie’.
The currency pair is forecast to see volatility later in the session when the Bank of Canada announces its latest interest rate decision.
Sterling advanced against a number of major peers including the Euro (EUR) and Australian Dollar (AUD) after Markit/CIPs compiled PMI data showed that the UK’s dominant services sector expanded more than forecast in November, suggesting that the UK economy may be slowing less than previously feared.
In its report, Markit said that the UK’s services PMI increased to a reading of 58.6 last month from a reading of 56.2 in October. The figure beat economist forecasts for a figure of 56.6. The positive data counters Tuesday’s worse than expected construction PMI that came in at 59.4.
‘Supporting the latest increase in activity was another rise in new business volumes. Panellists commented that demand was high, and they had been able to secure contracts from both new and existing clients. Advertising and marketing drives provided further support to sales efforts, and overall new business growth strengthened since October with over 28% of panellists recording a rise in new work,’ said Markit.
The Canadian Dollar meanwhile held onto gains against the Pound after it found support from a rebound in the price of crude oil. The price of the commodity rallied from $70 per barrel as the market rout created by OPEC’s decision not to curb production eased.
‘The market is still trying to find its feet following the OPEC meeting last week. There seems to be some short-term support around the $70 to $72 a barrel mark for Brent. But overall the market is still plagued by uncertainty,’ said a commodity analyst from Danske Bank.
Later, the Bank of Canada will announce its latest interest rate decision and British chancellor George Osborne is due to deliver his Autumn Statement.
The Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate
The Pound Sterling to Canadian Dollar Exchange Rate is Trading in the Region of 1.786
The Pound Sterling to Canadian Dollar Exchange Rate Fell to a Session Low of 1.778
The Pound Sterling to Canadian Dollar Exchange Rate Hit a Session High of 1.786
