The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate ticked lower by around -0.12% on Friday afternoon.
As traders await the British Gross Domestic Product Estimate, due for publication on Friday afternoon, the Pound softened versus many of its most traded currency rivals. The depreciation, albeit relatively fractional, is as a result of domestic data failing to meet with forecast figures.
The Canadian Dollar, meanwhile, edged higher versus many of its major peers despite a decline in crude prices. The advance can be attributed to tracking US Dollar gains.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 1.8487.
Pound Sterling (GBP) Exchange Rate Softens as Data Fails to Meet Expectations
Although both manufacturing and industrial production data showed that output had grown in February, the actual results failed to meet with the median market forecast figures. On the year, February’s Industrial Production advanced by 0.1%, failing to meet with expected growth of 0.3% and well below the previous production increase of 1.2%. February’s Manufacturing Production advanced by 1.1% on the year, below the market consensus of 1.3%.
British Chambers of Commerce Chief Economist David Ker stated; ‘While UK growth is likely to remain dependent on the healthy and dynamic services sector for the foreseeable future, there is no room for despondency. The manufacturing sector is in a good position to move forward when world circumstances improve, but only if low interest rates are maintained.’
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has fallen to a low today of 1.8425.
Canadian Dollar (CAD) Exchange Rate Edges Higher despite Crude Price Slide
As traders await influential Canadian labour market data, due for publication later on Friday afternoon, the ‘Loonie’ (CAD) edged higher versus many of its major peers. This can be attributed to tracking US Dollar gains.
Crude oil prices resumed declination on Friday, but this has had little impact on ‘Loonie’ movement. This may be because crude recently rallied and is still holding above $50 a barrel. Should the UK extract oil from the new site found recently near one of Britain’s busiest airports, however, crude prices are likely to decline significantly which is very likely to weigh on demand for the commodity-correlated Canadian Dollar.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast to Fluctuate
Given that there will be several Canadian data publications due later on Friday, and with the UK Gross Domestic Product Estimate also due later, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is likely to fluctuate over the course of Friday’s European session. Fluctuations in crude prices and other commodities may also impact upon the GBP/CAD pairing.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate advanced to a high of 1.8544 today.