The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate strengthened by around 0.22% on Tuesday morning.
As traders await the British growth data, due for publication later on Tuesday, the Pound is generally holding steady versus the majority of its most traded currency competitors. The Canadian Dollar, meanwhile, softened versus most of its major peers as a result of tracking US Dollar losses.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 1.8448.
Yesterday…
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate softened by around -0.67% on Monday afternoon.
In response to disappointing domestic data, the Pound softened versus many of its most traded currency rivals. Aiding the downtrend is continued dampened investor confidence amid political uncertainty as the general election fast approaches.
The Canadian Dollar, meanwhile, advanced versus the majority of its most traded currency peers on Monday afternoon. The gains can be linked to rising crude prices amid declines in the US rig count. Also aiding the ‘Loonie’ (CAD) uptrend was a stronger US Dollar, although recent poor US data could see the ‘Greenback’ (USD) soften.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 1.8371.
Pound Sterling (GBP) Exchange Rate Softens on Disappointing Data
With the general election only days away from conclusion, the Pound has generally softened versus the majority of its most traded currency competitors. With opinion polls giving differing results, and none establishing a majority for any political party, investor confidence has taken a significant knock.
In addition to dampened demand amid political unknowns, the Pound softened in response to less-than-ideal domestic data results. CBI Business Optimism dropped from 15 to 3 in April, failing to meet with the market consensus of an advance to 19. CBI Trends Selling Prices declined beyond the median market forecast of a drop from 4 to 2, with the actual result dropping to -3. Also, CBI Trends Total Orders failed to meet with predictions of a rise from 0 to 4, with the actual result only gaining to 1.
Chris Sumner, managing director of FANUC UK said: ‘Overseas orders have slowed down amidst continued economic fragility in the Eurozone. Whilst prevailing conditions constrain UK exports, a strong domestic market presents an opportunity to invest in product and process innovation.’
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has fallen to a low of 1.8559 today.
Canadian Dollar (CAD) Exchange Rate Climbs despite Lack of Data
With a complete absence of domestic data to drive changes, commodity prices have had a marked impact on ‘Loonie’ movement on Monday. Of particular significance, in terms of stoking the uptrend, was higher crude prices as the US rig count cools.
‘Overall we are in an upwards trend and we do appear to have found a short-term base,’ said Michael Hewson, chief market analyst at CMC Markets. ‘There’s a good chance we could see $70 a barrel (for Brent) over the course of the next month or so.’
Some are treading cautiously, however, amid fears that the recent rally will be short-lived. ‘It’s a push-and-pull situation with the Yemen tensions giving Brent support while US prices get pulled down as people steel themselves for another inventory rise next week,’ said John Kilduff, partner at New York energy hedge fund Again Capital.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast to Hold Losses
With crude prices showing no sign of dropping in the near-term, and with the forthcoming general election weighing on investor confidence, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is likely to hold losses for the remainder of Monday’s European session.
Tuesday ought to see heightened GBP/CAD volatility with British 1st-quarter growth data due for publication, but a complete absence of Canadian data should see the ‘Loonie’ subject to changes in commodities.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate reached a high of 1.8477 today.
