Pound Canadian Dollar Exchange Rate (GBP/CAD) Stable as Retail Sales Impress
The Pound to Canadian Dollar (GBP/CAD) exchange rate is holding fairly steady today, settling on a figure near the week’s opening one with the Pound edging ever-so-slightly higher than CAD following some forecast-beating domestic sales figures.
July saw monthly retail sales growth jump from -0.5% to 0.7%, with analysts forecasting a figure of just 0.2%. The numbers hurdled expectations across the board, with the yearly figure hitting 3.5% rather than the forecast 3%.
While these figures were only deemed by economists to have a medium impact, they’ve done enough to keep GBP trading slightly above its opening levels, with the ‘Loonie’ struggling to achieve forward momentum this session.
Pound (GBP) Exchange Rates Braced Ahead of Brexit Talks
With the next stage of Brexit negotiations beginning this evening, investors seem to be hesitant to commit themselves to the Pound (GBP) this session.
Time is running out for the UK and EU to strike a deal on the exit plan, but with neither side showing any sign of conceding to the other, traders are skittish.
Experts predict the EU will maintain its stone-wall negotiation tactics, ultimately leaving Prime Minister Theresa May – also the UK’s lead negotiator – scrambling for a way forward.
Canadian Dollar (CAD) Exchange Rates Struggle with Static Oil Prices
Canadian Dollar (CAD) exchange rates are largely dependent on developments abroad today, with inert crude oil prices failing to give the commodity-correlated ‘Loonie’ any buying power in markets.
This comes in the wake of news that the US crude oil supply has risen, with the larger quantity lowering demand and thus lowering the price.
Canada also released some data today in the form of manufacturing sales and employment change, with the former coming in at 1.1% down from 1.5% last month.
Employment change fell well short of expectations at 11.6k, which beat last month’s -10.5k but shied away from the forecast of 45.1k.
Pound Canadian Dollar (GBP/CAD) Exchange Rate Forecast: Canadian Inflation In Focus
The Pound Canadian Dollar (GBP/CAD) exchange rate may experience volatility tomorrow with the publication of Canada’s latest inflation rate data.
However, as economists aren’t expecting any change in inflation the Canadian Dollar may struggle to find momentum.
Canada’s retail sales figures for June are due to be published next Wednesday, with a forecast decrease potentially undermining CAD further.
With a stark absence of noteworthy UK data next week, GBP may find itself at the mercy of markets and political developments, which could see the currency weaken – especially if Brexit negotiations are not conducive to the parties finding a solution.