The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate strengthened by around 0.76% on Friday morning as a result of British data showing the trade deficit narrowed and manufacturing production increased above expectations.
The Canadian Dollar, meanwhile, is trending lower against the majority of its most traded rivals as a result of a disappointing set of domestic data publications.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 1.7979.
Pound Sterling (GBP) Exchange Rate Strengthens on Ecostats
After domestic data produced mostly positive results, the Pound strengthened versus many of its major peers. Balance of Trade showed a significant narrowing of the deficit, having advanced from £-2.25 billion to £-1.4 billion. Year-on-year Manufacturing Production bettered the median market forecast of 2.3% growth with expansion of 2.7%. November’s Manufacturing Production gained from -0.7% to 0.7%. In addition, Industrial Production improved upon the median market forecasts on both a monthly and yearly basis.
There are ‘encouraging signs that the UK’s recovery still had some momentum towards the end of 2014,’ said economist Maeve Johnston. ‘The improvement in the trade deficit should not be a flash in the pan and the manufacturing sector should benefit greatly from lower costs. As things stand, then, 2015 should be a better year for manufacturers and exporters.’
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate dropped to a low today of 1.7825.
Canadian Dollar (CAD) Exchange Rate Softens ahead of Domestic Data
Whilst traders await Canadian labour market data the ‘Loonie’ (CAD) is generally trending lower against its major peers. Much of the declination is as a result of a softer US Dollar after rate hawks were disappointed by Federal Reserve officials talking down the timing of rate revisions.
In addition to the softer US Dollar, the fact that crude remains lower than $50 a barrel is causing dampened demand for the Canadian Dollar. ‘So far, there is no indication that OPEC will waver from its decision made at the meeting last year to maintain production,’ said Harry Tchilinguirian, commodities expert.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast to Fluctuate
With key Canadian data due for publication on Friday afternoon, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has the potential to undergo volatility. With that being said, the Canadian Dollar is unlikely to rebound fully amid weaker oil prices.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate climbed to a high today of 1.7939.