Pound Canadian Dollar (GBP/CAD) Exchange Rate Muted as PM Stands Down as Tory Leader
The Pound Sterling Canadian Dollar (GBP/CAD) exchange rate remained muted and the pairing is currently trading at an inter-bank rate of CA$1.6977.
Today, Prime Minister Theresa May will officially stand down as leader of the Conservative Party.
Theresa May will remain Prime Minister until her successor is chosen.
Meanwhile, the Halifax house price index revealed that prices rose by 0.5% in May.
This suggested stability in the housing market, however this could do little to buoy Sterling against the ‘Loonie’.
Commenting on this Russell Galley, Managing Director at Halifax said:
‘We saw a slight increase in house prices between April and May, but the overall message is one of stability. Despite the ongoing political and economic uncertainty, underlying conditions in the broader economy continue to underpin the housing market, particularly the twin factors of high employment and low interest rates.’
Canadian Dollar (CAD) Flat despite Steady Canadian PMI Growth
On Thursday, data revealed that the pace of purchasing activity in Canada showed steady growth.
May’s Ivey Purchasing Managers Index (PMI) rose from 56.7 to a higher-than-forecast 61.8, while the seasonally adjusted figure remained unchanged at 55.9.
Meanwhile, the gauge of employment rose to 55.1 in May from 53.7 in April.
This was the highest level for the employment index which August 2018, which likely provided the Canadian Dollar with an upswing of support.
US-Mexico Trade Talks Spark Optimism
Yesterday, US and Mexican official held a second day of talks on migration and trade which sparked optimism in markets.
Talks are due to continue on Friday.
However, it was unclear if Mexico’s promises to halt migration flows were enough to persuade the US to postpone its 5% tariffs.
The talks caused US stocks, oil and Treasury yields to rise.
However, this could do little to buoy the oil-sensitive ‘Loonie’ on Friday.
Discussing the talks, US Vice President Mike Pence stated that Mexico had offered ‘more’ on Thursday, but it would be up to President Trump to decide if this is enough.
In a statement, Pence said:
‘There has been some movement on their part. It’s been encouraging. The discussions are going to continue in the days ahead.’
Pound Canadian Dollar Outlook: Will Disappointing UK GDP Weigh on GBP?
On Friday afternoon, the Canadian Dollar could rise against the Pound (GBP) following the release of the Canadian unemployment rate.
If May’s unemployment edges down further than forecast, it could provide an upswing in support for the ‘Loonie’.
Looking ahead to the start of next week, the Pound could slide following the release of April’s GDP data.
If it is revealed the UK economy has not grown at the start of the second quarter, the Pound Canadian Dollar (GBP/CAD) exchange rate could slide.