The Pound Sterling (GBP) has advanced by 0.3% against the Canadian Dollar (GBP/CAD) today. No further developments have occurred for the Pound, but a number of beneficial US releases have further destabilised the Canadian Dollar’s (CAD) tenuous position.
Rising US Dollar (USD) set to Further Harm Progress of the ‘Loonie’ in Near Future
With no high-impact UK or Canadian economic publications due in the near future, the most movement in the pairing is likely to be caused by several impending US data releases. These will be the ISM Non-Manufacturing Composite for December, along with the Federal Reserve’s December Meeting minutes.
The most recent US economic news that the ADP Employment Change has shown a massive rise in December has bolstered the ‘Buck’ today.
Earlier…
The Pound Sterling has risen by 0.4% against the Canadian Dollar (GBP/CAD) this morning, which represents a significant improvement on Sterling’s marginal gains that were seen at the end of yesterday’s European trading session.
Canadian Dollar (CAD) Also Softened by Recent Unsupportive Domestic Data
The Canadian Dollar (CAD) has made little positive movement since the trading session closed yesterday; this is mainly on account of the price of crude oil per barrel hitting a low of $35.50 today. In addition, yesterday saw the Canadian Industrial Product and Raw Materials Price Indices for November either enter negative figures for the first time or otherwise remain there.
Earlier…
Thanks to the condition of the Canadian Dollar (CAD) deteriorating across the course of the day, the Pound Sterling (GBP) has managed to eke out a minor gain against the ‘Loonie’ this afternoon.
Commodity Crisis may be Eclipsed due to Possible Storms on the Horizon for Canadian Banks
Although the Canadian Dollar (CAD) has lately risen and fallen with the price of gold and crude oil, forecasters at Macleans have predicted that the North American nation may have a far greater threat to its economic value looming in the current year. According to economist Jason Kirby, due to Canadian banks holding assets roughly double the nominal GDP of Canada, a downturn could be disastrous. This would likely be a death knell for economic growth in a country that is desperately attempting to come to terms with a downsizing mining industry that has previously provided for it for decades.
Earlier…
The Pound Sterling (GBP) has remained at a loss of -0.3% against the Canadian Dollar (GBP/CAD) today, while the prices of commodities have conversely risen to further strengthen the Canadian currency’s position.
Investors Looking ahead to UK PMIs Tomorrow, Optimism Currently on the Cards
The next major results likely to affect the pairing’s movement, the UK Markit/CIPS Composite and Services PMIs for December, are due tomorrow morning. However, at the time of writing the only available forecast was a pessimistic one for the Services result.
Earlier…
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has fallen today, although in other pairings the Pound (GBP) has generally fluctuated in positive and negative directions.
GBP/CAD Exchange Rate News: Winter Sales Results and UK Referendum Amendment News Today
The Pound Sterling (GBP) has moved sporadically across the board today, with sizable losses and gains being recorded. In the former category have been declines of -0.3% against the Canadian Dollar (GBP/CAD) and -0.6% against the Japanese Yen (GBP/JPY), while in the latter have been advances of 0.4% against the Euro (GBP/EUR), 0.6% against the Swedish Krona (GBP/SEK) and 0.7% against the Hungarian Forint (GBP/HUF). This weakness against the Canadian currency comes as a contrast to the positive performance seen on New Year’s Eve.
The day’s UK economic news has generally been limited to three fields. The first has been that Next has posted disappointing sales figures for the Christmas period, something that is unlikely to inspire optimism for the remainder of sales figures covering that space of time. David Cameron is set to announce that ministers will be allowed to campaign for whichever side they choose in the EU Referendum Vote, something that has the potential to deflate one or the other side of the argument, depending on the reaction of MPs to the news. The third factor affecting the Pound’s value today has been the Construction PMI for December, which has risen from 55.3 to 57.8.
Canadian Dollar (CAD) Bolstered Today by Supportive Commodity Prices
The Canadian Dollar (CAD) has been pushed upwards both yesterday and today, thanks to escalating tensions in the Middle East. Due to the prevailing uncertainty over the stability of gold and crude oil supply lines out of the war-torn region, the cost of ‘safer’ domestic supplies like those found in Canada has risen considerably.
It is worth noting, however, that because this price boost has been caused by ongoing tensions, a fading of hostilities could result in the price of the commodities and the value of the ‘Loonie’ both dropping.
The Canadian Dollar has risen by 0.3% against the Pound Sterling (CAD/GBP) and by 0.7% against the Euro (CAD/EUR) today.
GBP/CAD Exchange Rate Forecast: Canadian Yearly Outlook due Shortly, UK House Prices Out Tomorrow
Canada will be the dominant voice in the pairing for the rest of the day, with this afternoon bringing a trio of Canadian domestic publications. Of the three, however, the 2016 Economic Outlook delivered by Chief Economists of several Canadian banks is likely to cause the most movement. Other than this, the nation’s November Industrial and Raw Product Prices are also scheduled for release and were forecast to respectively rise from -0.5% to 0% and fall from 0.4% to -2.5%.
Supporters of the Pound (GBP) will have to wait until tomorrow for the next pieces of UK data, which will be comprised of the Halifax House Prices for December. At the time of writing, a repetition of 9% was forecast for the tri-monthly period up to December but an improvement from -0.2% to 0.5% was predicted for the base monthly result.
More significantly, another data release tomorrow morning will be the Markit/CIPS Composite and Services PMIs for December.
Current GBP, CAD Exchange Rates
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending in the region of 2.0442 and the Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate was trending in the region of 0.4897 today.
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