The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has fallen today, as key GDP data for Canada is impending.
‘Loonie’ (CAD) may hold its Ground in CAD/GBP Pairing Following Positive Results
The stabilisation of the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is due to the release of Canada’s month-on-month (MoM) and year-on-year (YoY) GDP data for May, out later today. Forecasts for the data are pessimistic, with monthly stagnation and a slowing of yearly growth from 1.2% down to 0.8% expected. If, however, the figures exceed expectations, it could see a rally for the ‘Loonie’ against its rivals, as signs of major growth would restore a great deal of confidence in the Canadian Dollar (CAD).
The Canadian Dollar to New Zealand Dollar (CAD/NZD) exchange rate has seen gains of 0.6% today, but the ‘Loonie’ has underperformed elsewhere, trending in a narrow range against the Pound Sterling (CAD/GBP) and the Australian Dollar (CAD/AUD).
Earlier…
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has risen by 0.3% today, as Canada is set to receive some potentially discouraging GDP figures tomorrow.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate News: Bullish Gains for Pound Sterling, Bearish ‘Loonie’ Faces Slowdown Concerns
The Pound Sterling (GBP) has risen considerably today, seeing a gain of over 0.9% against the New Zealand Dollar (GBP/NZD) and the Mexican Peso (GBP/MXN), and greater gains against the South African Rand (GBP/ZAR), where the Pound jumped 1.3%. The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was also favourable, seeing a 0.3% rise.
This comes after a wave of optimism followed Chancellor George Osborne’s meeting with French Economy Minister Emmanuel Macron over possible benefits for UK trade with the EU, and the UK Mortgage Approval and Net Consumer Credit figures for June both exceeded forecasts.
The Canadian Dollar, however, has fallen against the Pound Sterling (CAD/GBP) by -0.7% and the US Dollar (CAD/USD) by -0.4%. Although the ‘Loonie’ has gained against the New Zealand Dollar (CAD/NZD) by 0.7% today, the Canadian currency has seen no other major gains amidst pessimistic predictions over the future of Canada’s economy.
Canadian Dollar to Pound Sterling (CAD/GBP) Exchange Rate Dips Following Conference Board Downgrade
The Conference Board of Canada (CBC), an economic think tank, downgraded its yearly forecast for Canada’s economy yesterday, dropping their previous 1.9% forecasted growth down to 1.6%. The revision of this figure was attributed to Canada’s Q1 contraction this year, the plummeting price of crude oil, and an overall uncertainty in global markets.
This comes at a time when the Canadian oil industry is in dire straits, with less than US$50 per barrel prices and high profile spillages and accidents putting unwanted pressure on the key Canadian industry.
Pound Sterling to Canadian Dollar Exchange Rate Forecast: GBP/CAD may continue to Gain if Canadian GDP Indicates Stagnation
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate doesn’t seem set to shift any time soon, unless the month-on-month (MoM) and year-on-year (YoY) Canadian GDP figures for May indicate significant (and unexpected) growth for the Canadian economy. As it stands, the forecasts are unfavourable, predicting a monthly stagnation of 0.0% and a yearly reduced growth from 1.2% down to 0.8%.
Fears over a Canadian recession are low, however, and Matthew Stewart, Associate Director, National Forecast of the CBC, stated that even if Canada falls into the dreaded economic state, the effects will be ‘small and short-lived, with the economy picking up through the rest of the year.’
Current GBP, CAD Exchange Rates
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending in the region of 2.0324 and the Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate was trending in the region of 0.4926 today.
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