GPB/CAD Exchange Rate Edges Higher as Boris Johnson Returns to No.10
The Pound to Canadian Dollar (GBP/CAD) exchange rate rose by 0.2% today, with the pairing currently trading around CA$1.748.
Sterling has continued to benefit after Prime Minister Boris Johnson returned to Downing Street last night, following a lengthy recovery from the coronavirus.
Meanwhile, today saw the Prime Minister deliver a TV statement in which he claimed that the UK was beginning to ‘turn the tide’ on the coronavirus.
However, Mr. Johnson also warned of a ‘second spike’ in cases, commenting:
‘I can see the long-term consequences of lockdown as clearly as anyone, so yes, I entirely share your urgency.’
‘It is the government’s urgency. And yet we must also recognise the risk of a second spike, the risk of losing control of that virus and letting the reproduction rate go back over one.’
Pound (GBP) have reacted positively to news that the UK could be heading beyond the ‘first phase’ of the coronavirus crisis.
However, due to a lack of economic data and any conclusive signs that the nationwide lockdown could be eased anytime soon, Sterling traders are remaining cautious.
Canadian Dollar (CAD) Exchange Rate Falls on Oil Price Volatility
The Canadian Dollar (CAD) struggled against the stronger Pound (GBP) today despite oil prices extending their recovery. US oil prices are recovering from last week’s drop due to sinking demand.
Harry Tchilinguirian, the global oil strategist at BNP Paribas, London, was downbeat in his analysis, commenting:
‘The market is very concerned of a repeat of negative pricing as the Cushing storage and delivery hub saturates.’
‘The shift of open interest away from June will have negative consequences for the liquidity of the contract, potentially leading to greater volatility in its price.’
With Canada being an oil-reliant economy, news of further volatility in the oil markets has left ‘Loonie’ traders anxious today.
If oil prices show any signs of falling again this week, then we could see the Canadian Dollar fall further against the Pound.
GBP/CAD Forecast: Could Easing UK Lockdown Measures Boost the Pound?
Canadian Dollar (CAD) investors will be looking ahead to Thursday’s publication of February’s Canadian GDP report. However, if this falls below consensus even before the coronavirus pandemic, we could see the ‘Loonie’ tumble.
The GBP/CAD exchange rate will be dictated by coronavirus developments this week due to a quiet UK economic data calendar. However, any indication of the nationwide lockdown being eased would prove Pound-positive.
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