GBP/CAD Conversion Rate Predicted to Trend Statically as Poor UK Public Finances Continues to Weigh on Sterling
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending within a limited range on Monday afternoon.
With a complete absence of British economic data today the Pound has seen movement in response to market volatility. A slight lean towards depreciation can be linked to speculation that last week’s particularly disappointing public finances data will cause Chancellor George Osborne to introduce harsher austerity measures. ‘October’s poor borrowing numbers extinguish any lingering hope that the chancellor will be able to soften his austerity plans materially in next week’s autumn statement,’ said Samuel Tombs, chief UK economist at the consultancy Pantheon Macroeconomics.
‘The big picture here is that the government deficit is closing … But that decline in borrowing is not as rapid as the OBR predicted at the time of the budget in July,’ said Chris Hare, economist at banking group Investec. ‘But as public sector finance figures show the job is not yet done and government borrowing remains too high,’ she added.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 2.0224.
CAD/GBP Conversion rate Predicted to Hold Steady despite Rising Oil Prices
Oil prices advanced today after an announcement from Saudi Arabia that they intend to cooperate with OPEC nations in order to bring stability back to the oil market. This caused the Canadian Dollar to strengthen, although oil futures remain bleak which could be the reason for the ‘Loonie’s’ (CAD) moderate response.
‘Perhaps it would be fitting here to mention the role of the Kingdom of Saudi Arabia in the stability of the oil market, and its continued willingness and prompt, assiduous efforts to cooperate with all oil producing and exporting countries, both from within and outside OPEC, in order to maintain market and price stability,’ stated Ali bin Ibrahim Al-Naimi, the Saudi minister for petroleum and mineral resources.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Predicted to Trend Narrowly ahead of CBI Reported Sales Data
Given the complete absence of further domestic data to provoke changes, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is likely to continue trending narrowly for the remainder of Monday’s European session. Tuesday’ could see changes with the publication of British CBI Reported Sales data. With a complete absence of Canadian economic data tomorrow the ‘Loonie’ is likely to see changes in response to US Dollar positioning and crude oil prices.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is was trending within the range of 2.0191 to 2.0342.
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