- UK currency appreciates strongly – ‘In’ campaign said to be leading on latest polls
- National borrowing less positive – Government misses target by around £4bn
- Canadian Dollar fluctuates as fires continue – Lack of domestic data amplifies concerns of national downturn
- BOC interest rate decision due tomorrow – Current forecasts for rate freeze
The Pound has been on a veritable bull run against its peers recently, with most pairing movements being highly positive.
The Canadian Dollar, meanwhile, has given a less certain performance, on account of sparse domestic data and unfavourable conditions at home.
UK Economic News: EU Referendum Poll Send’s Pound’s Appeal Skyrocketing on ‘Remain’ Support
The Pound has been an extremely strong contender against all of its major peers today, having recorded gains of 0.8% against the Canadian Dollar (GBP/CAD), 1% against the Euro (GBP/EUR), 1.1% against the New Zealand Dollar (GBP/NZD) and 1.5% against the Australian Dollar (GBP/AUD).
These astonishing advances have been triggered by earlier EU Referendum news; a poll commissioned by the Telegraph has shown that the ‘In’ vote has a 13-point lead on an ‘Out’ minority.
Other polls released around the same time have all given ‘Remain’ over 50% of the vote based on respondent data, which is a source of immense relief for investors, who consider an ‘In’ vote the more stable option.
Commenting on the spread of the data, ‘Remain’ supporter Sir Lynton Crosby has stated that the ‘Brexit’ side of the debate is flagging after having:
‘Failed to quell ongoing concerns about the financial and economic consequences of a ‘Brexit’’.
In terms of domestic data, the latest UK borrowing stats have shown that the Government missed its target by almost £4bn in April, although this negativity was not enough to drag the Pound down against its rivals.
Canadian Dollar Rates Mixed as Alberta Wildfires Remain a Hot Topic
The ‘Loonie’ has been an uncertain prospect for investors lately, as although gains of 0.4% against the New Zealand Dollar (CAD/NZD) and 0.7% against the Australian Dollar (CAD/AUD) have been seen, the Canadian currency has also declined by -0.8% against the Pound (CAD/GBP) and trended in a tight range elsewhere.
No Canadian data of note has been released yet this week, therefore the ‘Loonie’ has been mainly influenced by commodity prices and domestic economic uncertainty.
The price of crude oil on the WTI index has fallen of late, as has the price of gold. Further afield, the wildfires disrupting the oil industry in Alberta remain unextinguished, although recent weather shifts have aided the job of firefighters in identifying the spread of the blaze.
One of the most harmful events towards the Canadian Dollar of late has been the news that the Fed may be hiking the interest rate in June. However, despite a number of hawkish comments coming from policymakers recently, many feel that the Fed will hold off until after June 23rd’s EU Referendum vote.
Future GBP, CAD Forecast: BOC Interest Rate Decision Tomorrow, UK GDP Out on Thursday
The next data due to affect the GBP/CAD pairing will come from Canada, with tomorrow afternoon bringing May’s Bank of Canada (BOC) interest rate decision.
At present, however, forecasts are for a rate freeze at 0.5%.
Following on from this on Thursday morning will be the UK’s next contribution, in the form of the preliminary Q1 GDP results. Expectations have been for respective reprints at 0.4% on the quarter and 2.1% on the year.
Current GBP, CAD Exchange Rates
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending in the region of 1.9195 and the Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate was trending in the region of 0.5216 today.
Comments are closed.