Canadian Dollar to British Pound (CAD/GBP) Exchange Rate Supported by Trade Figures
Although the Canadian Dollar (CAD) softened against the Pound (GBP) on Friday, the currency had been enjoying a couple of comparatively upbeat days.
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Several factors have supported the Canadian Dollar exchange rate this week and helped the commodity-driven asset advance on peers like the Pound (GBP) and Euro.
The ‘Loonie’ climbed on Wednesday as investors responded to encouraging Canadian manufacturing figures and the currency held the gains into Thursday. The Royal Bank of Canada’s manufacturing gauge climbed from a four-month low of 52.2 in May to 53.5 in June, marking the sector’s strongest growth since the beginning of 2014.
The improvement in manufacturing was largely due to rising new orders and output, and a RBC official asserted; ‘We expect that those conditions will further improve going forward, supported by a strengthening global economy, increases in external demand for domestic goods and a depreciating Canadian dollar’.
As the Canadian Dollar is a commodity-driven currency, China’s impressive Services and Composite PMI lent the asset additional support.
On Thursday the Canadian Dollar (CAD) exchange rate consolidated its position thanks to comparatively impressive domestic trade figures.
Canada may have recorded a trade deficit in May, but the shortfall narrowed to 152 million Canadian Dollars thanks to an energy and automobile-led jump in exports.
Economists had expected Canada to record a deficit of 300 million Canadian Dollars.
Gains against the US Dollar were a little limited as the ‘Greenback’s appeal broadened in response to surprisingly upbeat US employment figures.
The Canadian Dollar also went on to ease lower after the price of Brent crude oil, one of Canada’s main exports, declined. Oil is now heading for its second weekly price drop.
In the view of strategist Michael McCarthy; ‘The dying down of geopolitical tensions is clearly depressing oil prices. The market is removing some of the risk premium. West Texas has now fallen below the key support level of $105.25 a barrel, meaning that risks are now on the downside.’
The Canadian Dollar (CAD) to Pound (GBP) exchange rate was little changed as European trading kicked off on Friday, down 0.1% on the previous days close.
Next week the Canadian Dollar exchange rate could be affected by a number of domestic economic reports, including Building Permits, Ivey Purchasing Managers Index, Business Outlook Future Sales, Housing Starts, New Housing Price Index and, most influentially, the nation’s Employment and Unemployment rate figures.
The Canadian Dollar to British Pound exchange rate is currently trading in the region of 0.5476.
The British Pound to Canadian Dollar exchange rate is currently trading in the region of 1.8263.