GBP/CAD Conversion Rate Trending Narrowly Today ahead of UK Construction Data
Sentiment towards the Pound (GBP) is somewhat cooled this morning, with investors discouraged ahead of the day’s UK Construction Output figures. Although the ‘Loonie’ (CAD) shows no particular signs of recovery the GBP/CAD exchange rate is currently on a narrow trend in the region of 2.0236.
Earlier…
As optimism towards the Pound (GBP) has begun to fade this morning, the GBP/CAD exchange rate is trending lower despite a fresh plunge in crude oil prices.
Hawkish Comment from BoE’s Carney Inspires Pound (GBP) Rally on Increased Bets of 2016 Interest Rate Rise
Yesterday’s raft of UK employment data was more mixed than pundits might have hoped, as Average Weekly Earnings failed to accelerate in the three months to September while the Jobless Claims Change figure for October showed a larger-than-expected increase in unemployment benefit claims. Although this initially weighed on the Pound (GBP) the currency soon rallied in response to the revelation that the country’s Unemployment Rate had unexpectedly fallen to a fresh seven-year low.
Also bolstering Sterling on Wednesday was a surprisingly hawkish remark from Bank of England (BoE) Governor Mark Carney, indicating a belief that the UK economy was strong enough to weather current negative global headwinds. Reigniting hopes that the central bank could make a move on interest rates sooner rather than later, this pushed the GBP/CAD exchange rate towards a weekly high of 2.0195.
Canadian Dollar Currency News: Fears of Increased OPEC Production Cap Weigh on CAD Today
Following another rise in US crude stockpiles this week the price of oil, and consequently the ‘Loonie’ (CAD), has been under pressure once again. Production in the US appears to be keeping up apace in spite of global glut concerns, a worrying sign for investors after the International Energy Agency (IEA) made the dovish forecast that oil prices would not top $80 per barrel until 2020. Speculation has also arisen that the Organisation of the Petroleum Exporting Countries (OPEC) could decide to raise its own cap on production at its December meeting, further fuelling the persistent bearishness of the commodity. Altogether this has kept benchmark Brent crude trending down in the region of a three-month low of $45.80.
GBP/CAD Exchange Rate Forecast: Canadian New Housing Price Index Predicted to Strengthen ‘Loonie’
Nevertheless, trade on the ‘Loonie’ is picking up ahead of this afternoon’s Canadian New Housing Price Index. Traders anticipate that the index will hold steady at growth of 1.3% on the year, offering some support to the strength of the domestic housing market after the week’s more disappointing Housing Starts figure.
The only remaining UK data ahead of the weekend will be the September Construction Output report, which is expected to show some decided improvement. Should this measure prove sufficiently strong the GBP/CAD exchange rate could extend recent gains on the evidence of continued recovery within the local economy.
Current GBP, CAD Exchange Rates
At time of writing, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was on a slight downtrend in the range of 2.0158, while the Canadian Dollar to Pound Sterling (CAD/GBP) pairing made gains in the region of 0.4956.
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