Over the course of European trading the Pound consolidated recent gains against several of its most traded currency counterparts and enjoyed a more bullish relationship with rivals like the US Dollar.
The Pound rallied yesterday as a Bank of England official intimated that it was reasonable to expect an interest rate increase to occur during the first or second quarter of 2015. However, other BoE policymakers have since stressed that there are currently no plans to raise borrowing costs and that any such action would be taken in a slow and considered manner.
Sterling fluctuations were limited as UK growth data showed the quarterly expansion of 0.7 per cent expected by economists and BoE policy maker Ben Broadbent supported the currency’s current exchange rate.
During a conference in London Broadbent commented that; ‘The strength of Sterling is really a reflection of the fact that the rest of the world, Europe in particular, really hasn’t grown much.’
As the price of crude oil dipped towards a week low Sterling held its advance against the Canadian Dollar, with the GBP/CAD exchange rate easing moderately higher ahead of Friday’s all-important Canadian growth figures.
A lack of economic news for Canada has left ‘Loonie’ movement somewhat restrained, but Friday’s GDP data could change the situation.
In the view of Western Union; ‘Currently, sentiment is towards a weaker Canadian Dollar coming into the Friday GDP report, as traders seem more eager to act on selling opportunities, quickly jumping into short CAD positions rather than taking contrarian bull positions’.
The ‘Loonie’ was slightly weaker against the US Dollar even as US MBA mortgage applications data showed an 8.5 per cent decline in the week ending February 21st.
The Canadian Dollar continued to trade higher against a struggling ‘Aussie’ due to iron ore prices falling and the value of Australian construction unexpectedly dropping in the fourth quarter of last year.
Tomorrow’s Canadian current account figures are unlikely to have much of an impact on the GBP/CAD pairing, but Friday’s UK consumer confidence survey may prove a catalyst for movement ahead of the release of Canadian GDP at 13:30 GMT.
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,0.5403,
Canadian Dollar,,US Dollar,0.9033,
Canadian Dollar,,Euro,0.6566,
Canadian Dollar,,Australian Dollar,1.0038,
Canadian Dollar,,New Zealand Dollar,1.0853 ,
US Dollar,,Canadian Dollar ,1.1093,
Pound Sterling,,Canadian Dollar,1.8500,
Euro,,Canadian Dollar,1.5222,
Australian Dollar,,Canadian Dollar,0.9959,
New Zealand Dollar,,Canadian Dollar,0.9215,
[/table]
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