GBP/CAD Exchange Rate Stable on Strong UK Retail Sales Growth
The Pound Canadian Dollar (GBP/CAD) exchange rate is steady this morning as some strong UK retail sales figures help to offset some soft UK economic data from earlier in the week.
At the time of writing the GBP/CAD exchange rate is virtually unchanged this morning, leaving the pairing trading at CA$1.73.
Pound (GBP) Buoyed by Strong UK Retail Sales
The Pound (GBP) is holding steady against the Canadian Dollar (CAD) and its other peers this morning as markets welcome the UK latest retail sales figures
According to data published by the Office for National Statistics (ONS), UK retail sales growth surged from an upwardly revised 0.6% to 1.1% in March, expanding at their fastest pace since November and easily beating forecasts of a 0.3% contraction.
The ONS suggested this surge in sales was likely attributed to the mild spring weather that the UK enjoyed this year, compared to 2018 and the disruption caused by the snow.
This uptick in spending is also made all the more impressive by the heightened Brexit uncertainty that hung over consumers last month, with shoppers still apparently willing despite the apparent threat of the UK crashing out of the EU.
Conversely however some analysts warned this Brexit uncertainty could have triggered some panic buying, likely resulting in growth weakening again in the coming months after the UK’s Brexit deadline was delayed by six months, something which capped any upside in Sterling this monring.
Ruth Gregory, senior UK economist at Capital Economics explains:
‘[The data} adds to evidence that the economy grew at a pretty reasonable rate… in the first quarter given the political chaos.
‘Of course it is entirely possible that sales will be weaker in the second quarter if no-deal Brexit concerns caused consumers to bring forward purchases in to March
GBP/CAD Exchange Rate Forecast: Rebound in Canadian Retail Sales to Lift the ‘Loonie’?
Coming up later this afternoon will be the release of Canada’s own retail sales figures, potentially denting the Pound Canadian Dollar (GBP/CAD) exchange rate if Canadian sales growth rebounded in line with expectations.
Economists forecast that sales growth will have jumped from -0.3% to 0.4% in February, ending three-months of consecutive contraction and likely bolstering CAD exchange rates.
Meanwhile the Pound may experience some thin trade at the end of this session and the start of next week as UK markets close for the long Easter weekend.