UPDATE
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending within a limited range on Friday morning.
As crude oil prices recover some recent losses, thanks to intervention by the People’s Bank of China (PBoC) to shore up stock values, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending within a tight range ahead of British trade balance data.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 2.0615.
Yesterday…
GBP/CAD Conversion Rate Predicted to Tick Lower as George Osborne Forecast to Deliver Dovish Speech
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate edged lower by around -0.4% on Thursday afternoon.
Although British economic data produced positive results today, the Pound Sterling softened versus nearly all of its most traded currency counterparts. December’s Halifax House Prices bettered the market forecast of 0.5% growth on the month with the actual result showing 1.7% price growth. In addition, Halifax House Prices advanced by 9.5% in the three months leading up to December on the year, bettering the median market forecast 9.0%. Also, December’s New Car Registrations capped off 2015s all-time high new car sales with 8.4% growth on the year.
The Pound’s depreciation can be linked to speculation that Chancellor George Osborne will deliver a particularly dovish speech today. Experts predict that Osborne will highlight a ‘cocktail’ of economic issues resulting from the global economic slowdown. ‘Last year was the worst for global growth since the crash and this year opens with a dangerous cocktail of new threats,’ he will say in the speech. ‘For Britain, the only antidote to that is confronting complacency and sticking to the course we’ve charted.’
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 2.0497.
CAD/GBP Conversion Rate Predicted to Edge Higher despite 12-Year Low Crude Prices
With the exception of the Pound, the Canadian Dollar softened versus most of its currency rivals after crude oil plunged to a fresh 12-year low during the European session. The depreciation in oil prices can be linked to turmoil in China’s equity markets following a drop in the Shanghai Composite Index by over 7%. ‘China devaluing its currency sparks concern that the global growth engine is starting to slow and that creates a dump of any high-flying stocks or anything people perceive as risk,’ stated Yousef Abbasi, a New York based strategist. ‘When you start to worry about growth, you have crude oil down and it all ties together. It’s the New Year and people are scratching their heads, they’re not quite ready to buy the dip.’
As most had anticipated, Bank of Canada (BOC) Governor Stephen Poloz stated that he has a number of tools at his disposal to suppress risks regarding inflation and economic growth. ‘We have a number of tools at our disposal–both conventional and unconventional–to mitigate risks to our inflation target or to our financial system, should they arise,’ Governor Stephen Poloz said in the text of a speech he’s giving Thursday in Ottawa. ‘The Bank of Canada will continue to run an independent monetary policy, anchored by our inflation target, and we will use our tools to manage risks along the way.’
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate dropped to a low of 2.0469 during Thursday’s European session.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast: British Trade Balance and Canadian Labour Market Data to Provoke Volatility
There will be a number of economic data publications on Friday with the potential to provoke significant Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate volatility. However, there is a high chance that trade will continue to be dominated by crude oil prices.
In terms of British data November’s Trade Balance stats will be of significance. For those trading the Canadian Dollar, December’s Net Change in Employment and Unemployment Rate should spark ‘Loonie’ (CAD) volatility.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate reached a high of 2.0676 during Thursday’s European session.
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