GBP/CAD Exchange Rate Rangebound Following Appointment of Canada’s New Finance Minister
The Pound to Canadian Dollar (GBP/CAD) exchange rate held steady today, with the pairing currently fluctuating around CA$1.733.
The Canadian Dollar (CAD) suffered today following the release of the US Federal Reserve’s latest meeting minutes which showed a more dovish analysis of the global economy. Consequently, this has limited the appeal of the ‘Loonie’ which is particularly sensitive to global market sentiment.
The Fed’s statement revealed:
‘The projected rate of recovery in real GDP, and the pace of declines in the unemployment rate, over the second half of this year were expected to be somewhat less robust than in the previous forecast.’
Meanwhile, the Canadian Dollar (CAD) has benefited from the appointment of Canada’s new finance minister, Crystia Freeland. Bill Morneau, the previous finance minister, said that she would have a ‘longer term perspective’ as the nation tackles the Covid-19 crisis.
In other Canadian economic news, Canadian Dollar (CAD) investors will be looking ahead to today’s speech from the Bank of Canada’s (BoC) Deputy Governor, Paul Beaudry.
Pound (GBP) Steady as Doubts Grow Over UK-EU Brexit Trade Deal
The Pound (GBP) held steady against the Canadian Dollar (CAD) today owing to a quiet UK economic calendar and uncertainty over UK-EU post-Brexit relations.
Despite Downing Street’s reassurances that it is seeking a post-Brexit trade deal as early as next month, GBP investors have remained generally sceptical. This follows critical comments from Michel Barnier, the European Union’s chief negotiator.
Mr Barnier said that the British Government had shown no ‘willingness to break the deadlock’. His UK counterpart, David Frost, said that the EU had failed to honour ‘fundamental principles which we have repeatedly made clear’.
Meanwhile, GBP investors will be looking ahead to this evening’s release of August’s GfK consumer confidence report. Any improvement in consumer morale could give the GBP/CAD exchange rate a boost.
GBP/CAD Outlook: Could Positive UK Economic Data Boost the Pound This Week?
Canadian Dollar (CAD) investors will be looking ahead to tomorrow’s release of June’s Canadian retail sales figure. Any improvement in Canada’s retail sector could boost the ‘Loonie’.
Tomorrow will also see the release of Canada’s new housing price index for July. If this confirms consensus and rises by 0.1%, then it’s unlikely to boost for the CAD/GBP exchange rate.
Pound (GBP) traders will be awaiting tomorrow’s release of the UK services PMI for August. Any improvement in the UK’s largest sector would prove GBP-positive.
The GBP/CAD exchange rate could rise this week if UK economic data points to an improvement in the nation’s economic recovery.