The Pound Sterling (GBP) has fallen by -0.9% against the Canadian Dollar (GBP/CAD) today, mainly due to the price of crude oil and gold rising enough to send the ‘Loonie’ (CAD) on a rally.
Fed’s Decision may Trigger ‘Loonie’ (CAD) Rally if Interest Rate Freeze Goes Ahead
Although high-impact UK data and less notable Canadian figures are due out tomorrow, ahead of this will be the FOMC Interest Rate Decision. This is expected to remain at 0.25% by most economists, therefore if accurate, the Canadian Dollar (CAD) is likely to uptrend against the Pound (CAD/GBP) on the news.
Earlier…
The Pound Sterling (GBP) has advanced by 0.5% against the Canadian Dollar (GBP/CAD) today, just one of a number of gains for Sterling that have come in spite of declining UK Q3 GDP results.
US Influence likely to provide only GBP/CAD Movement Tomorrow
By virtue of there being no UK or Canadian economic announcements due tomorrow, the movement of the US Dollar (USD) is the most likely factor to have an impact on the pairing. Most key are the Advance Goods Trade Balance for September and the later and more impactful Federal Open Market Committee (FOMC) Interest Rate Decision.
Earlier…
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has trended narrowly in a positive range today, although the day’s UK data has not matched up with economists’ expectations.
GBP/CAD Exchange Rate News: Shortfall in Housing Loans leaves Lords’ Decision in Focus
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has made marginal gains today, while in other pairings the Pound has been highly inconsistent. Rises of more than 0.3% against the Chinese Yuan (GBP/CNY), the Russian Ruble (GBP/RUB) and the Swiss Franc (GBP/CHF) have been seen, but these have been matched by declines of -0.2% against the Australian Dollar (GBP/AUD) and over -0.5% against the Turkish Lira (GBP/TRY) and the Hungarian Forint (GBP/HUF).
The Pound has been moved today by a drop from 46567 to 44489 in the UK Loans for House Purchases result for September; a rise from the previous result had actually been forecast. Elsewhere, the CBI Business Optimism and Trends figures have all printed negatively, something that has also hardly been of benefit to Sterling. With that in mind, the only other major economic news for the UK is that the House of Lords will be voting on the controversial tax credits cut proposal, something unprecedented for the Upper House to do. Proponents of the plan have argued that the loss of credits will be offset by a rise in the minimum wage, while opponents have pointed out that an average £1000 will be lost per year for low-income households and that self-employed persons will not gain from any state wage increase.
Lacklustre Canadian Dollar (CAD) Performance comes from Lack of Releases and Weak Commodity Prices
The Canadian Dollar (CAD) has declined marginally against the Pound Sterling (CAD/GBP) today and has fared little better against other currencies. CAD movements have included drops of 0.1% against the New Zealand Dollar (CAD/NZD) and -0.2% against the Australian Dollar (CAD/AUD). On the other side of the coin, a minimal rise of 0.2% against the US Dollar (CAD/USD) and a narrow trending against the Euro (CAD/EUR) have been recorded.
The lack of Canadian data until the end of this week has put the ‘Loonie’ in an unfavourable position today; it is possible that only some minor rises in the price of crude oil per barrel and gold per 100 ounces have saved the Canadian currency from complete decline today.
GBP/CAD Exchange Rate Forecast: Lack of Canadian Data in Near-Future Leave UK GDP Results Centre-Stage
Very few Canadian economic publications are due out this week, with the first set being Thursday’s Industrial Product Prices for September and the second being Friday’s Business Barometer and GDP result for August.
As a consequence, the Pound Sterling (GBP) essentially has a clean field with which to make gains beforehand. This is most immediately apparent with Tuesday’s Q3 Actual GDP figures; at the time of writing, no change from 2.4% had been predicted for the annual result while a minor decline from 0.7% to 0.6% had been forecast for the quarterly outcome.
Current GBP, CAD Exchange Rates
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending in the region of 2.0167 and the Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate was trending in the region of 0.4964 today.
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