GBP/CAD Exchange Rate Wavers as Cost-of-Living Crisis Sours Black Friday
The Pound Canadian Dollar (GBP/CAD) exchange rate is fluctuating as retailers remain under pressure as living cost squeeze caps spending.
At time of writing the GBP/CAD exchange rate is around $1.6153, relatively unchanged from this morning’s opening rates.
Pound (GBP) Subdued amid Cost-of-Living Headwinds
The Pound (GBP) is struggling for demand today in the face of increased industrial action and downbeat economic forecasts. Nurses have joined Royal Mail postal workers in striking, and retailers are set to feel the pinch as Black Friday is set to disappoint UK businesses.
Black Friday usually heralds the beginning of the holiday season of spending for consumers as they take advantage of pre-Christmas sales. However, with the cost-of-living crisis weighing on the economy, and consumers, economists have warned that retailers might have to brace for a bleak holiday season. The Centre for Economics and Business Research (CEBR) has warned that Black Friday won’t be as prosperous as previous years:
‘The cost-of-living crisis, combined with warnings that discounts are often more generous at other times of year and the threat of a Royal Mail strike, will mean that it is a weak year for Black Friday sales, and we may see January sales start early in an attempt to shift stock.’
Meanwhile, industrial action continues to cast a shadow over the UK economy as the Royal College of Nurses (RCN) confirmed strikes for 15 and 20 December. The walkouts will follow postal workers as Royal Mail strikes began today and set to continue in the run up to Christmas.
Looking ahead, the Pound will be left exposed to domestic issues. A lack of major data could weigh on Sterling, as a myriad of headwinds is likely to keep a lid on Sterling.
Canadian Dollar (CAD) Wavers on Oil Price Recovery
Meanwhile, the Canadian Dollar (CAD) is also failing to muster demand today despite a modest upturn in oil prices. Concerning news out of China continues to weigh on risk sentiment, and in turn, the ‘Loonie’.
After remaining under pressure for most of the week, WTI crude is trading at just shy of $80 a barrel, a two-day high. Increased Covid cases in China continue to impact global market sentiment, as lockdowns continue to sap demand of oil.
Looking ahead, the Canadian Dollar will continue to trade on market sentiment, and any further developments out of China could impact the commodity-linked ‘Loonie’.
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