CAD/GBP Exchange Rate Falling After Disappointing Data
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The Canadian Dollar has reached session highs of 0.5452 versus Sterling and lows of 0.5431.
Canada saw the release of highly favourable unemployment Rate figures on Friday falling to 7.0% in July from the former 7.1%. However, Net Change in Employment figures showed only 200 positions filled in July, far from the 24.0K economists had forecast.
Full time employment change showed -59.7K jobs down, which has created unease for the Canadian job market.
Consequently the ‘Loonie’ is trading down against other currency majors, with fears surrounding the lethargic Canadian economy.
Foreign exchange expert Blake Jespersen commented: ‘The “Loonie’s” definitely trading defensively after an awful employment report, much lower than the consensus. Full-time was down almost 60,000—that basically leaves employment in Canada flat for the whole year.’
Conversely the Pound has also witnessed disappointment today, unable to gain any lost ground in the currency market following negative trade balance figures showing the deficit widening.
The Total Trade Balance for June figure reached -£2459, despite only being forecast to attain -£2050. Furthermore the Trade Balance for Non EU statistics were published at -£3841, bypassing economists’ predictions of -£3700.
Economist at the British Chambers of Commerce David Kern stated: ‘It is disappointing that the trade deficit widened again in June. Weaknesses in the global economy are still a problem and the challenges facing UK exporters are being made even greater by the strengthening Pound.’
Meanwhile worries following Russia’s recent bans on imports from EU countries weighs on the British economy.
Economist Howard Archer commented: ‘UK exporters will be perturbed by currency worrying signs that already weak Eurozone growth is faltering anew as deteriorating relations with Russia and tit-for-tat sanctions weigh down on confidence.’
In a pocket of hope however, the UK produced favourable Construction Output figures, reaching an unexpected 5.3% despite only being forecast to attain 4.7%.
For now the Canadian Dollar and the Pound will remain liable to fluctuation following any development in geopolitical escalations; however the Canadian Dollar looks set to remain on a downward trajectory after such negative figures.