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Pound Canadian Dollar (GBP/CAD) Exchange Rate Rangebound as Oil Prices Steadily Recovery

Canadian Dollar Currency Forecast

GBP/CAD Exchange Rate Steady, Rising Oil Prices Fail to Boost Canadian Dollar

The Pound Canadian Dollar (GBP/CAD) exchange rate held steady today despite the oil-sensitive ‘Loonie’ benefiting from a modest up-tick in oil prices. The pairing is currently fluctuating around CA$1.73.

However, concerns over the spread of the Delta variant of Covid-19 in China has hit demand for oil, with fears that the global economy could once again be set-back by further lockdowns.

RBC analyst Gordon Ramsay said earlier this week:

‘Concerns about potential global oil demand erosion have resurfaced with the acceleration of the Delta variant infection rate.’

While analysts at Aljazeera commented on China’s oil imports:

‘China’s crude oil imports dipped slightly on a daily basis in July to 9.71 million barrels per day (bpd), the fourth month in a row of imports below 10 million bpd and sharply down on a record 12.94 million bpd in June 2020 when refiners were stocking up on cheap crude, data released on Saturday showed.’

In absence of Canadian economic data, however, the ‘Loonie’ has remained relatively rudderless. But any further signs that oil prices could be disrupted would quickly see the Canadian Dollar exchange rate suffer.

Pound (GBP) Exchange Rate Steady as UK Market Await GDP Data

The Pound (GBP) held steady against the ‘Loonie’ because of an absence of UK economic data, leaving the Sterling without clear direction.

Nevertheless, 75% of UK adults have now received two coronavirus jabs, meaning that the outlook for the nation’s economic recovery is looking more positive.

Health Secretary Sajid Javid celebrated the milestone, saying:

‘Three in 4 adults across the UK have now had both doses of the vaccine, which is incredible and a testament to the fantastic work of the NHS, volunteers and everyone involved in the roll-out.

‘Getting 2 doses of a COVID-19 vaccine is the key to enjoying a host of new freedoms safely – whether that be to enjoy a trip abroad with family or a night out with friends – as we continue to build our wall of protection.’

However, with daily cases of Covid-19 infections rising, GBP investors are remaining on the whole cautious, with fears that these could rise – along with hospitalisations – in the autumn and winter months.

GBP/CAD Exchange Rate Outlook: Could Rising Oil Demand Boost the ‘Loonie’?

Pound (GBP) investors will await tomorrow’s release of the flash UK GDP data for the second quarter. Could an uptick in UK economic growth boost the GBP/CAD exchange rate for the rest of the week?

Tomorrow will also see the publication of the industrial and manufacturing production data for June. If these edge higher, then the Pound would benefit.

Canadian Dollar (CAD) investors will monitor oil prices this week. Any signs of rising demand for crude oil would be CAD-positive.