The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has declined noticeably today, owing to a lack of direct UK economic input and favourable prices for Canadian commodities.
GBP/CAD Exchange Rate News: BoE’s Libor Alternative Provides Mixed Blessings for Sterling Today
The Pound Sterling (GBP) has fallen by -0.7% against the Canadian Dollar (GBP/CAD) today, which has been just one of a number of sizable declines for Sterling. The Pound has also made losses of -0.9% against the Swedish Krona (GBP/SEK), -1% against the South African Rand (GBP/ZAR) and -3.3% against the unstable Russian Ruble (GBP/RUB). Gains have been made up of 0.5% against the Egyptian Pound (GBP/EGP) and over 0.8% against the New Zealand Dollar (GBP/NZD) and the Australian Dollar (GBP/AUD).
The Pound has had no direct releases of UK data to support it today, but economic news has emerged from the Bank of England (BoE) today. According to BoE Executive Director for Markets Chris Salmon, the London Interbank Offered Rate (LIBOR) is too vulnerable to manipulation and therefore the BoE will be looking to develop a new ‘risk-free’ interest rate benchmark next year. LIBOR has been a controversial system recently, given that investigations have identified fraudulent actions on the LIBOR as contributing factors towards the financial crisis of 2008.
Commodity Cost Rise Relives ‘Loonie’ (CAD) Investors Today
The Canadian Dollar (CAD) has been bolstered today by sharp upsurges in the price of gold per 100 ounces and crude oil per barrel today; given the lack of domestic data, uncertainty around the Fed’s imminent decision is thought to be another contributing factor to the current Canadian Dollar uptrend.
Gold has risen from around $1165 to almost $1180 since yesterday and crude oil has jumped up from close to $43.00 to over $45.50 over the same period.
The ‘Loonie’ has made gains of 0.7% against the Pound Sterling (CAD/GBP) today, in addition to rises of 0.9% against the US Dollar (CAD/USD) and over 1.5% against the New Zealand Dollar (CAD/NZD) and the Australian Dollar (CAD/AUD).
GBP/CAD Exchange Rate Forecast: Fed’s Interest Rate Decision due Today, UK Lending and Minor Canadian Results Tomorrow
The next piece of data likely to affect the GBP/CAD pairing will be the Federal Open Market Committee (FOMC) Interest Rate Decision due this evening, although given that ‘no change’ is the general forecast, a repeated rate freeze is likely to boost the Canadian Dollar’s performance in the following hours.
Tomorrow, the UK Nationwide House Prices figures for October are due, along with September’s Net Consumer Credit and Mortgage Approval result. At the time of writing, forecasts were positive for all three fields, with growth being forecast overall.
Later on, Canada will have input with the Industrial and Raw Material Price Indexes for September, which have been forecast to rise and fall respectively.
Current GBP, CAD Exchange Rates
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending in the region of 2.0147 and the Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate was trending in the region of 0.4971 today.
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