On Tuesday, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was little changed due to muted trading for the Christmas holidays. The ‘Loonie’ found some support from a slight rise in oil prices as production dipped slightly due to ongoing fighting in Libya.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate firmed later on Monday as crude oil prices extended their decline on concerns that OPEC’s refusal to cut production will worsen a global glut.
Earlier The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate softened on Monday after oil prices advanced for a second consecutive day and rose to the highest level seen in four months.
The cause for the rise in crude oil was a result of Saudi Arabia and other Organisation of Petroleum Exporting Countries (OPEC) members saying that they are confident that oil prices will rebound higher next year as global economic growth bolsters demand for the commodity.
Since the November 27, OPEC meeting where the organisations members voted in favour of maintaining high production the price of crude oil has tumbled by 21%.
Increased supply out of the USA has been a major factor for the glut in global stockpiles of black gold.
At Sunday’s conference in Abu Dhabi, Qatar’s energy minister Mohammed Al Sada said; ‘We are now in a provisional, correctional period. Markets have stabilisation mechanisms that will bring stability. We don’t know exactly how long it will take but it will stabilise because the current prices will separate the efficient producers from the producers who have high costs.’
Oil prices are forecast to begin to inch higher over the coming weeks as oil producers try to talk prices higher in order to strike a balance.
‘We can expect more persuasive talk to try and get prices back to a happy median. A good balance for the market is $70. We’re coming into the Christmas period of low liquidity, so expect volatility and fluctuations to continue,’ said Jonathan Barrat, chief investment officer at Ayers Alliance Securities in a phone interview with Bloomberg.
GBP/CAD Exchange Forecast
The Pound Sterling to Canadian Dollar exchange rate is forecast to experience little in the way of movement as market activity wanes ahead of the Christmas and New Year holidays.
Many market participants are already on holiday so trading volumes are expected to remain light.
A lack of data releases from both the UK and Canada will also contribute to light trading.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate
The Pound Sterling to Canadian Dollar Exchange Rate Hit a Session High of 1.8140
The Pound Sterling to Canadian Dollar Exchange Rate Hit a Session Low of 1.8093
The Pound Sterling to Canadian Dollar Exchange Rate Was Trading in the Region of 1.8112