The Pound Canadian Dollar (GBP/CAD) plummeted this afternoon after Canadian employment soared during March, although Sterling has since clawed back some of the losses.
At the time of writing the GBP/CAD pairing are currently trading at around CA$1.7218 as the Pound ends the week on a sour note.
Pound (GBP) Dips as Coronavirus Vaccine Limit the Currency
The Pound is ending the week on the back foot against the Canadian Dollar after profit-taking and coronavirus vaccine concerns dragged Sterling down.
Earlier in the week a bout of profit-taking knocked GBP lower against many of its biggest rivals, the currency had begun to stabilise against the Canadian Dollar yesterday before faltering heading into this afternoon.
The UK’s independent medical regulator’s decision to offer under 30’s an alternative vaccine to AstraZeneca has been met with caution from investors.
Despite England’s second stage of lockdown easing coming into force next week, investors are concerned that the UK’s vaccination rollout may be delayed and cause the economic recovery of the country to be delayed.
Furthermore the R rate across the UK has remained at 0.8-1 for the second week in a row, sparking concerns an uptick of coronavirus infections could be on the way.
Canadian Dollar (CAD) Soars on Employment Data
The Canadian Dollar has soared against the Pound heading into the weekend after the most recent employment change data from Canada soared during March.
Canada added 303,100 jobs in March, triple analyst expectations of 100,000 while the unemployment rate dropped to its lowest point since before the pandemic.
Doug Porter, chief economist at BMO Capital Markets commented on the sharp increase:
‘Clearly the economy was much more open than many believed and I do think the very mild weather contributed to this very robust comeback.’
A softer tone regarding crude oil prices has however limited the Canadian Dollar today.
Pound Canadian Dollar Exchange Rate Outlook: Coronavirus Developments in Focus
Over the weekend, Pound investors will be keeping an eye on any coronavirus developments as investors prepare for the next stage in England’s lockdown easing.
If the second stage of easing goes to plan and the rollout of the Moderna vaccine across the UK improves the economic outlook the Pound could see itself regaining traction.
For Canadian Dollar traders any change in the global market mood could drive movement in CAD exchange rates, a rebound in US treasury yields could cause the ‘Loonie’ to fall back.