- Sterling advances after Weale comments – BoE official counters early rate cut fears
- ARM Holdings purchase confirmed – Mixed reception to major business news
- Canadian Dollar slides along with oil price – Rising gold cost fails to enthuse investors
- UK inflation stats due tomorrow – Canadian CPI variants due on Friday
The appeal of the Pound has been extremely high of late, with comments from a Bank of England (BoE) official doing a great deal to raise the perceived value of the Pound.
The Canadian Dollar, on the other hand, has slumped overall, with recent commodity prices serving to devalue the ‘Loonie’ against its peers.
UK Economic News: Pound Sterling Rallies Heavily on BoE Weale Speech
The Pound has advanced notably against virtually all of its peers of late, with gains including 0.2% against the Euro (GBP EUR), 0.8% against the Canadian Dollar (GBP CAD) and 1.2% against the Japanese Yen (GBP JPY). In less supportive news, Sterling has slumped by -1% against the Polish Zloty (GBP PLN) and -1.3% against the South African Rand (GBP/ZAR).
The Pound started the day on an uptrend, potentially triggered by a recovery from last Friday’s crash caused by extremely dovish comments from the BoE’s Andy Haldane.
While Haldane argued that an interest rate cut was a likelihood in August, his viewpoint was countered early on Monday by BoE official Martin Weale, in his last major speech for the central bank.
Weale stated that:
‘Uncertainty points to the argument that we should wait for firmer evidence before making any policy change’.
In other UK business news, ARM Holdings has been bought out by Softbank, a Japanese company. This has been met with a mixed reception, as while Chancellor Phillip Hammond has cited it as evidence of confidence in the UK economy after the Referendum, others have labelled it as a ‘steal’ for Softbank due to the Pound’s massively weakened status.
Canadian Dollar Loses Out in Exchange Rates on Poor Oil Prices
As the week opens properly, the Canadian Dollar has been an unstable option for investment across the board. In particular for the ‘Loonie’, losses have been seen of -0.4% against the Australian Dollar (CAD AUD), -0.6% against the Euro (CAD EUR) and -0.9% against the Pound (CAD GBP).
Domestic data from Canada has been fairly sparse of late, concerning only foreign securities purchases in May. These have risen in the category for Canadians only, but fallen slightly on the overall figure.
In commodities news, while the cost of gold per 100 ounces has risen supportively, the price of crude oil has dipped down to the US$45 mark.
Future GBP, CAD Forecast: UK to bring Mixed-Forecast Inflation Rate Stats
The next data out of the UK likely to have an impact will come tomorrow morning, when the monthly and annual inflation rate results for June are due.
At present, forecasts have been for a rise on the year but a dip on the month.
Canada’s variant on inflation is expected at the end of the week, when the early-afternoon will bring the results for June.
The annual result is expected to reprint at 1.5%, while the monthly outcome is expected to fall from 0.4% to 0.2%.
Current GBP, CAD Exchange Rates
The Pound Canadian Dollar (GBP CAD) exchange rate was trending in the region of 1.7247 and the Canadian Dollar Pound (CAD GBP) exchange rate was trending in the region of 0.5804 today.
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