The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate gained by around 0.39% on Friday afternoon.
British economic data printed positively on Friday which caused the Pound to strengthen versus the majority of its most traded currency rivals. Positive comments from Citigroup official Steven Englander also aided the Sterling uptrend.
The Canadian Dollar, meanwhile, softened versus many of its major peers after domestic data produced mixed results. Aiding the ‘Loonie’ (CAD) downtrend was cooling oil prices and dampened market sentiment amid geopolitical tensions in Greece.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 1.8970.
Pound Sterling (GBP) Exchange Rate Forecast to Strengthen Versus the US Dollar (USD) after Positive Domestic Data
Domestic data produced positive results on Friday, reigniting the Sterling rally initiated by the Conservative Party majority win in the British general election. March’s Construction Output increased by 1.6% on the year; bettering the market consensus of a 1.1% increase. On the month, Construction Output advanced by 3.9% in March.
In addition to positive data spurring a Sterling appreciation, comments made by Citigroup official Steven Englander fuelled gains. Englander suggested that the UK currency was looking ‘very attractive’. He stated; ‘In our negative- and low-yield world, it is the only major liquid currency with a significant yield other than the Dollar,’ Englander wrote. ‘The surprise Conservative majority in the election removes the political risk of a hung parliament and sharp reversal of policy. Overweighting the Pound gives you Euro diversification with yields that are only a couple of basis points below Dollar yields.’
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate dropped to a low of 1.8877 today.
Canadian Dollar (CAD) Exchange Rate Forecast to Soften Versus the Euro (EUR) as Oil Prices Cool
As a risk-correlated currency, the Canadian Dollar softened versus many of its major peers amid geopolitical tension in Europe. Aiding the depreciation was cooling oil prices as the US Dollar strengthened. ‘Crude oil prices continue to remain very sensitive to the US Dollar movements,’ said Myrto Sokou, an analyst at Sucden Financial.
Canadian economic data produced mixed results on Friday which err towards negativity. Of particular detriment was April’s Existing Home Sales which came in at 2.3% on the month; a considerable decline from March’s sales of 4.1%. This is still considered positive growth in sales however. ‘As expected, low mortgage interest rates and the onset of spring ushered many home buyers off the sidelines, particularly in regions where winter was long and bitter,’ CREA President Pauline Aunger said.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast to Hold Gains on lack of Data
Given the absence of further economic data to provoke changes, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is likely to hold gains for the remainder of Friday’s European session. There could be heightened GBP/CAD volatility over the weekend, however, with changes to commodity prices and risk-appetite affecting the ‘Loonie’.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate climbed to a high of 1.8994 today.
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