The Pound Sterling (GBP) has risen by 0.3% against the Canadian Dollar (GBP/CAD) today but has conversely fallen to trend in a narrow range against the US Dollar (GBP/USD).
US Composite Score to decide State of Play Tomorrow
The Pound’s (GBP) performance today has been indicative of its overall relationship with the ‘Buck’ (USD) and the ‘Loonie’ (CAD); a strong US Dollar pushes the Canadian Dollar down, which allows the GBP/CAD pairing to rise as the GBP/USD pairing falls. The US Dollar has received support today from a 190k increase in the number of employed persons in August, although this fell 100k short of estimates. The Canadian Dollar was also harmed by a dip in the price of crude oil down to almost $44.10 per barrel from above $45.00.
Tomorrow, the Pound can be expected to rise further against the ‘Loonie’ and fall further against the ‘Buck’ if the US ISM Non-Manufacturing Composite for August comes in against the forecast decline.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has dropped by -0.3% today after the US ISM Manufacturing score showed a drop from 52.7 to 51.1. The Pound (GBP) has also fared poorly against the US Dollar (GBP/USD), trending in a narrow range.
US Employment Figures will Provide Second Chance for GBP/CAD Rise
The Pound Sterling (GBP) may still be able to claw back a rise against the ‘Loonie’ (GBP/CAD) today after the US ADP Employment Change figure for August comes in, however, if this figure shows a major rise, while the Pound could advance against the Canadian Dollar (CAD), it would likely also drop against the strengthened US Dollar (GBP/USD).
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has risen today although Sterling (GBP) has failed to make many gains elsewhere due to detrimental UK data releases.
GBP/CAD, GBP/USD Exchange Rate News: Little Cause for Optimism as UK Results Fall Flat
The Pound Sterling (GBP) has risen by 0.4% against the Canadian Dollar (CAD) today although the decline of -0.2% against the US Dollar (GBP/USD) has been the least of the Pound’s losses today. Elsewhere, Sterling has fallen by -0.8% against the Euro (GBP/EUR), the Swiss Franc (GBP/CHF) and the Danish Krone (GBP/DKK) and has seen a far greater loss of -1.3% against the Japanese Yen (GBP/JPY). Sterling has, however, advanced by over 0.6% against the Mexican Peso (GBP/MXN) and the Norwegian Krone (GBP/NOK).
This poor overall performance comes along with the news that UK Net Consumer Credit for July fell, as did the Manufacturing PMI for August. The impact of these results wasn’t mitigated by comments issued by Bank of England (BoE) Governor Mark Carney over the weekend. Carney stated at the Jackson Hole Symposium that nothing had really changed when it came to considering a UK interest rate hike after last week’s chaos.
Canadian Dollar (CAD) Dives along with Crude Oil Prices, US Dollar (USD) has Mixed Faring
The Canadian Dollar (CAD) has declined across the board today with losses of -0.3% recorded against the Pound Sterling (CAD/GBP), -0.6% seen against the US Dollar (CAD/USD) and -1.2% against the Euro (CAD/EUR). This slump has been triggered by a sharp drop in the price of crude oil; despite seeing a major rise from below $39.00 per barrel to over $49.00 at the end of August, the price has spiked downwards today to below $48.00 and appears to show a continuing downtrend.
The US Dollar (USD) has had a mixed performance, coming in at 0.2% against the Pound Sterling (USD/GBP), 0.5% against the Canadian Dollar (USD/CAD) and 0.9% against the Norwegian Krone (USD/NOK) but falling by -0.6% against the Swiss Franc (USD/CHF) and by -1.1% against the Japanese Yen (USD/JPY). Jackson Hole held positive and negative news for the US; opinions emerged that central banks were losing their ability to influence inflation rates, but on the other hand, key Fed policymakers advocated raising the US interest rate regardless of the nation’s inflation rate movement.
GBP,CAD,USD Exchange Rate Forecast: Pound Sterling Movement to be Determined by Results from Rivals
All of the major UK data releases have come today, so the GBP/CAD and GBP/USD exchange rates are dependent on data releases from the others halves of the pairings. The Canadian annual and quarterly GDP figures are due later on; forecasts have been decidedly mixed and it should be remembered that Canada is currently in a (mild) recession. The US ISM Manufacturing figure is also due today; a marginal decline has been predicted and anything larger is likely to lower confidence in the ‘Greenback’ (USD) considerably.
Current GBP, CAD, USD Exchange Rates
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending in the region of 2.0240, the Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate was trending in the region of 0.4946, the Canadian Dollar to US Dollar (CAD/USD) exchange rate was trending in the region of 0.7582, the US Dollar to Canadian Dollar (USD/CAD) exchange rate was trending in the region of 1.3195, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5342 and the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6518 today.