OPEC Deal Helps Strengthen Canadian Dollar
The Pound Canadian Dollar exchange rate plummeted yesterday as the possibility of OPEC finally reaching an agreement to curb oil production caused a spike in oil prices and losses for GBP CAD.
The Canadian Dollar (CAD), an oil-based commodity currency, rose in anticipation of the deal being made in November after positive talks on Wednesday, also gaining on the US Dollar (CAD USD) and Euro (CAD EUR).
Meanwhile, conflicting messages from the heads of the Bank of England (BoE) did little to help the Pound hold against the strengthening Canadian Dollar (GBP CAD).
BoE Governor Mark Carney claimed that the long-term outlook for the UK economy was positive despite slowing growth, while later in the day Deputy BoE governor Minouche Shafik said that additional stimulus might be required to stop the slowdown worsening.
GBP CAD Forecast: Pound to Gain on Consumer Credit Report?
The Pound to Canadian Dollar exchange rate may rise in the wake of the latest British data releases. While the mortgage approval report is slightly disappointing, being down 900 on the month and at its lowest level since November 2014, August’s consumer credit report saw borrowing rise to £1.6b against £1.2b in July.
Tomorrow will see the release of Britain’s quarterly GDP report which is expected to hold steady at a respectable 0.6%, amidst uncertainty over ‘Brexit’ this could prove to be positive news for the Pound.
Canada’s GDP report is also due on Friday and markets expect to only see 0.3% growth after a strong showing of 0.6% in June, which could cause the ‘Loonie’ to tumble. The GDP report will be the last piece of significant Canadian data until late next week, so any further CAD movement is likely to be closely tied to any changes in the commodity market.
Current Exchange Rates
At the time of writing the GBP/CAD exchange rate was trending around 1.7025 and the CAD/GBP exchange rate was trending around 0.5875