The Pound Sterling (GBP) has fallen by a spectacular -1% against the Canadian Dollar (GBP/CAD) today, which has just been one of many large losses for the Pound. The primary cause for this has been the UK CPIs all falling short of expectations, with -0.1% being recorded for both base figures.
Last UK Data of the Week to Open Tomorrow’s GBP/CAD Movement
With the next major piece of Canadian data coming on Thursday, attention tomorrow will be predominantly focused on the UK Earnings, Claims and Employment data covering September and the three months to the end of August; at the time of writing, forecasts had been largely positive.
Earlier…
The Pound Sterling (GBP) has risen by 0.3% against the Canadian Dollar (GBP/CAD) today and on a whole, Sterling has been performing well against the rest of its competitors.
UK Inflation Results may Widen or Narrow the Current GBP/CAD Gap in Near-Future
The most significant piece of news for the pairing recently has been a speech from Bank of Canada (BOC) Governor Stephen Poloz, who delivered a cautious statement about focusing on the Canadian inflation rate and taking into consideration the factors that had affected the Canadian economy before and during the financial crisis that began in the late 2000’s. The bearish tone of Poloz’s words allowed the Pound (GBP) to take the lead against the ‘Loonie’ (GBP/CAD), although incoming UK data may undo the current advantage held by Sterling.
As mentioned previously, the UK CPIs for September are due out and forecasts are mixed for just what the outcome of these results would be.
Earlier…
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has trended narrowly but in a slightly positive range today, although direct economic announcements have been decidedly lacking for both currencies.
GBP/CAD Exchange Rate News: European Union Strengthening Measure provides only Sterling Movement Today
The Pound Sterling (GBP) has risen slightly against the Canadian Dollar (GBP/CAD) today, with far greater advances being seen elsewhere for Sterling. The most notable of these have been by 0.5% against the Egyptian Pound (GBP/EGP) and the Indian Rupee (GBP/INR), 0.6% against the South African Rand (GBP/ZAR) and 0.8% against the Singapore Dollar (GBP/SGD).
Although no UK domestic data has come out today, the Pound has been supported by the launching of the campaign to keep the UK in the Eurozone, which has appropriately been named the ‘In Campaign’. Unlike the opposing groups which desire a ‘Brexit’ situation of the UK separating from the EU, the establishment of the official ‘In’ group has been a smooth transition. By contrast, the two largest rival campaigns, ‘Leave.EU’ and ‘Vote Leave’ have yet to decide on which will be leading the ‘Out’ faction.
Although the referendum is not due until ‘before the end of 2017’, today’s news has solidified hopes that the UK will remain part of the EU, increasing confidence in Sterling’s future value.
Canadian Dollar (CAD) Struggles to Establish Itself Today despite Beneficial Commodity Prices
The Canadian Dollar (CAD) has trended narrowly against most of its competitors today, including the Pound Sterling (CAD/GBP), the Australian Dollar (CAD/AUD) and the US Dollar (CAD/USD). While no domestic data has come out for the ‘Loonie’ today, its narrow trending is unusual on account of the price of crude oil per barrel and gold per 100 ounces both rising steadily from October 8th and October 7th respectively.
GBP/CAD Exchange Rate Forecast: BOC’s Poloz Speech due later on, UK Inflation Data out Tomorrow
The next major occurrence in the GBP/CAD exchange rate will be a speech from Bank of Canada (BOC) Governor Stephen Poloz this evening; looking further ahead, the UK Inflation Rate figures for September are due out tomorrow, although at the time of writing, the base annual prediction was for 0% while the Core yearly CPI forecast was for a 1.1% increase.
Current GBP, CAD Exchange Rates
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending in the region of 1.9841 and the Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate was trending in the region of 0.5045 today.
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