The GBP to CAD exchange rate was trading in the region of 1.85 on Wednesday after data showed that retail sales in Canada increased as expected in February.
According to Statistics Canada, retail sales in the North American country increased by 0.5% in February largely meeting economist forecasts. The figure suggests that sales slowed from the downwardly revised increase of 0.9% recorded in the previous month.
The soft figure suggests that retail sales added very little to the nation’s GDP, increasing speculation that economic growth slowed sharply in the first quarter of the year.
Sterling found some support earlier in the session after the Bank of England’s policy meeting minutes revealed that the central bank’s policy makers expect the UK economy to continue to strengthen over the coming months.
There was no sign that the bank was considering raising interest rates however which restrained the impact of the minutes. Next month’s minutes should offer a better indication as to when a rate hike could occur as they will include the recent fall in unemployment to below the bank’s target of 7%.
Earlier in the session the ‘Loonie’ came under pressure from the release of weak Chinese economic data which dented demand for riskier emerging and commodity based currencies.
Factory activity in the world’s second largest economy declined for a fourth-consecutive month in April. The preliminary HSBC purchasing manager’s index increased from 48.0 to 48.3. Despite the rise, China’s manufacturing sector remains under the 50 level which divides expansion from contraction.
The currency is likely to weaken further against the US Dollar if today’s new home sales and manufacturing data comes in strongly. Against the Euro the ‘Loonie’ is softer after the single currency strengthened following the release of positive news out of the Eurozone.
Canadian Dollar update
As of 15:40 on 24/04 – On Thursday the Canadian Dollar edged higher against peers like the Pound as the price of oil and copper (two major Canadian commodities) rose. The ‘Loonie’ was also boosted thanks to comments issued by Export Development Canada.
EDC stated that the weaker local currency and the improved economic performance seen in the US and several emerging market nations are likely to inspire a rebound in domestic exports.
However, gains against the US Dollar were limited as the safe-haven currency strengthened after the publication of impressive US durable goods orders and initial jobless claims figures.
Canadian Dollar (CAD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Canadian Dollar,
,Pound Sterling,0.5394 ,
Canadian Dollar,,US Dollar,0.9056,
Canadian Dollar,,Euro,0.6544 ,
Canadian Dollar,,Australian Dollar,0.9767 ,
Pound Sterling,,Canadian Dollar Dollar,1.8538 ,
US Dollar,,Canadian Dollar,1.1043 ,
[/table]
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