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Pound Canadian Dollar Exchange Rate Weakens Following BoC Comments

Pound Canadian Dollar exchange rate forecast

The Pound to Canadian Dollar (GBP/CAD) exchange rate has remained under pressure today following the latest Bank of Canada (Boc) policy rate decision for April.

At the time of writing the GBP/CAD pairing is trading at around CA$1.7324 as a lack of notable data keeps Sterling down.

Pound (GBP) Unappealing Due to Lack of Notable Data

The Pound has remained unappealing against the Canadian Dollar as a lack of notable data does nothing to support the currency.

Pound investors worry about the prospect of a third wave of coronavirus effecting the UK during the summer months, when the economy had hoped to be fully opened.

Professor Adam Finn, a member of the Joint Committee on Vaccination and Immunisation (JCVI), said that the lockdown easing plan may need to be ‘adjusted’:

‘I think if we do start to see significant rises in cases in some parts of the country, they may need to adjust back those dates in order to avoid the situation coming into effect. It’s a bit hard to be definite about this because by definition it’s uncertain.’

It comes as Public Health England today reported that Covid-19 cases have fallen in nearly all areas across England except the South West where they remain largely the same.

Canadian Dollar (CAD) Supported by Boc Comments

The Canadian Dollar has been supported against the Pound for much of the day following more positive comments from the BoC yesterday.

The central bank was more confident in its tone regarding Canada’s economic recovery from the coronavirus pandemic which helped to bolster CAD.

The BOC looks set to raise interest rates sooner than first thought, which in turn has helped CAD exchange rates gain significantly against many of its major rivals.

However, Canada’s coronavirus situation is concerning as Ontario on Wednesday reported a further 4,212 new cases of COVID-19 as intensive care units remain under pressure.

Pound Canadian Dollar Exchange Rate Outlook: UK Retail Sales in Focus

Tomorrow will see the release of the latest retail sales figures from the UK for March, which are expected to have recovered from a fall of -3.4% and enter growth territory at 4% as the UK economy reopens from lockdown restrictions.

The release of the latest flash PMI data and UK consumer confidence could also drive movement in Sterling heading into the weekend.

For Canadian Dollar traders, the latest wholesale sales data due to be released tomorrow could see CAD lose its traction as another monthly contraction is expected.

The GBP/CAD exchange rate will continue to be driven by any further coronavirus developments in the coming days, both the UK and Canada will continue to keep an eye on the Indian mutation of the virus.