Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Inches Higher
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate posted a modest advance on Friday as sliding oil prices weighed on the commodity-driven currency.
However, the GBP/CAD pairing could pare gains in the hours ahead as a result of the UK’s poor Construction Output figures for October.
Construction output was shown to have fallen by -2.2% on the month in October rather than increasing the 0.7% expected. September’s 0.6% increase was revised to 2.2%.
This poor monthly showing took the annual figure down from 6.7% to 0.7%.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate remained trending in a slightly softer position as Thursday progressed.
GBP/CAD Exchange Rate Holds Decline, CAD/USD 0.4% Lower
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was little changed following the publication of Canada’s New Housing Price Index.
The gauge increased by 0.1% on the month, as expected by economists, resulting in an annual figure of 1.6% in October.
According to Reuters; ‘New housing prices in Canada rose 0.1 percent in October from September, the third consecutive month-on-month increase, on strength in the Vancouver metropolitan area, Statistics Canada said on Thursday. The result matched analysts’ expectations. Prices in the Vancouver area grew by 0.4 percent, the largest jump since an identical increase in April 2010, on higher material costs and good market conditions. Vancouver accounts for almost 12 percent of the overall market. Prices in the combined region of Toronto and Oshawa, which represent a 28 percent slice, increased by 0.1 percent. Month on month, prices were up in eight of the 21 major metropolitan regions, down in three and unchanged in 10. The new housing price index rose by 1.6 percent compared with October 2013.’
Meanwhile, the Canadian Dollar to US Dollar (CAD/USD) shed over 0.4% after the ‘Greenback’ surged in response to upbeat American retail sales figures.
The impressive retail sales print of 0.7% ups the odds of the Federal Reserve being the first central bank in the Group of Seven nations to increase interest rates.
Earlier…
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate shed 0.3% during the European session despite the ‘Loonie’ coming under pressure as a result of another slide in oil prices.
GBP/CAD Exchange Rate Buckles Today Even as Oil Falls
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate slumped to a low of 1.7666 on Thursday, falling over 0.3% on the day’s opening levels, as a result of UK housing data.
Declines in the GBP/CAD pairing were a little restrained by the news that the price of oil (one of Canada’s key commodities) dropped to an almost five-year low.
Insinuations that Saudi Arabia is questioning the necessity of slashing output kept pressure on oil prices, as did yesterday’s prediction that worldwide demand for crude oil from the Organisation of Petroleum Exporting Countries will drop next year by about 300,000 barrels per day.
According to one industry expert; ‘Crude prices will continue to trade at lows. There are issues with supply and OPEC are not going to cut while the UK keeps on producing.’
While the tumbling oil prices did drive the Canadian Dollar to US Dollar (CAD/USD) exchange rate lower, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate failed to take advantage of the situation.
Slowing House Price Growth Stymies Pound Sterling (GBP) Exchange Rate Gains
The slide in the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was largely due to the UK’s House Price Balance report showing that the pace of price growth was at its slowest for a year and a half.
The index, compiled by the Royal Institute of Chartered Surveyors (RICS), fell from 20 to 13 in November. This was the lowest reading since May of last year.
According to Reuters; ‘Economists polled by Reuters had expected the index, which measures surveyors’ view of price trends over the preceding three months, to drop less sharply to +17. Britain’s housing market has been slowing since the middle of this year, due to tighter mortgage regulation and annual price rises of more than 10% that have far outstripped meagre wage growth.’
Today’s Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast
UK data is in short supply today, but further movement in the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate could be caused by Canada’s New Housing Price Index.
The US Advance Retail Sales figure will also be of interest, as will tomorrow’s UK Construction Output stats.
Canadian Dollar (CAD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Canadian Dollar,
,Pound Sterling,0.5549,
Canadian Dollar,,US Dollar,0.8701,
Canadian Dollar,,Euro,0.7002,
Canadian Dollar,,Australian Dollar,1.0539,
Canadian Dollar,,New Zealand Dollar,1.1160,
US Dollar,,Canadian Dollar ,1.1491,
Pound Sterling,,Canadian Dollar,1.8001,
Euro,,Canadian Dollar,1.4281,
Australian Dollar,,Canadian Dollar,0.9484,
New Zealand Dollar,,Canadian Dollar,0.8945,
[/table]
