The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending higher in Wednesday’s European session after an upbeat UK BBA Loans for House Purchase figure emerged.
UK BBA Loans for House Purchase Rise – Pound Sterling (GBP) Exchange Rate Climbs
The UK ecostat recorded a rise of 37.3K in February after January’s 36.4K; economists had forecast a figure in the region of 36.7K. The February ecostat hit a five-month high, although remained 20% lower than last year’s data.
BBA chief economist Richard Woolhouse stated: ‘The increase in mortgage approvals is welcome news and a sign that the housing market is beginning to improve. We’re seeing stronger demand for mortgages as consumers take advantage of some of the very competitive deals currently available.’
However, despite a rise in February, figures could become stunted over the next several months with the May general election looming closer. The prospect of a political shakeup is likely to cause sentiment to stumble and therefore mortgages and economic growth as a whole may be stilted as political decisions take place.
Canadian data is a little thin on the ground for most of the week, leaving the Canadian Dollar to Pound Sterling (GBP/CAD) exchange rate susceptible to global developments and oil price fluctuations.
As crude oil is Canada’s largest export, the near 60% price depreciation since last July has had a less- than-positive impact on the ‘Loonie’.
Furthermore, the price of oil is likely to sink further on nuclear negotiations between Iran and the US—Iran’s economy is extremely dependent on oil exports. If sanctions on Iran are lifted, the oil exporting nation could add additional pressure on crude prices as the oil surplus continues.
Moreover, Iran is reported to have 37 million barrels of oil stored which is ready to be shipped out immediately.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is likely to fluctuate on Thursday when Bank of Canada Governor Stephen Poloz speaks. In addition, Thursday will see the release of UK Retail Sales figures.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is trading at 1.8659; the Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate is trending in the region of 0.5364.
