The Pound to Canadian Dollar exchange rate strengthened on Friday after a report showed that economic growth fell in the first quarter of the year as harsh winter weather dragged upon the North American nation’s economy.
According to Statistics Canada gross domestic product expanded at an annualised rate of 1.2% in the first quarter of 2014.
The figure is sharp drop from the previous quarter’s revised figure of 2.7%. Economists had been expecting GDP to fall to a pace of 1.8%.
The data also showed that domestic demand shrank for the first time since 2009.
Despite the poor showing, Canada’s GDP outpaced the U.S. where latest figures showed output shrank 1% at annual rates in the first quarter, as severe winter weather exacted a major toll on the economy.
The harsh weather seen in the first three months of the year was blamed for the economic contraction witnessed in both North American countries.
The disappointing GDP figures also weighed on the ‘Loonie’ as investors raised their bets that the Bank of Canada will choose to leave interest rates unchanged at next week’s policy meeting.
Also weighing upon the Canadian currency was further reduction in commodity prices.
Canada’s biggest export of crude oil fell by 59 cents to US$102.99 per barrel. Copper inched higher by a penny but gold fell by $2.30.
Sterling continued to find support from the week’s positive data releases.
Data released early on Friday showed that consumer confidence in the UK has reached its highest level in nine-years and that house prices rose for a 16th consecutive month.
Canadian Dollar (CAD) Exchange Rates
|Canadian Dollar||Pound Sterling||0.5504|
|Canadian Dollar||US Dollar||0.9222|
|Canadian Dollar||Australian Dollar||0.9917|
|Canadian Dollar||New Zealand Dollar||1.0875|
|US Dollar||Canadian Dollar||1.0846|
|Pound Sterling||Canadian Dollar||1.8171|
|Australian Dollar||Canadian Dollar||1.0080|
|New Zealand Dollar||Canadian Dollar||0.9187|