Canadian Dollar to Pound (CAD/GBP) Exchange Rate Climbing; Employment Figures Re-released Friday
The Canadian Dollar (CAD) to Pound (GBP) exchange rate is presently residing at 0.5473 following a slump in Sterling. This session has allowed the Canadian ‘Loonie’ to climb from lows of 0.5434, to attain highs of 0.5478.
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The Canadian Dollar has seen a steep appreciation against the Pound following the latest Bank of England (BoE) Inflation Report which has dashed hopes of any interest rate hikes before the close of 2014. Governor for the BoE Mark Carney stated that UK growth and development ‘faces some challenges’ and that any interest rate hikes will be ‘gradual and limited’.
Furthermore the Canadian Dollar to Pound exchange rate has risen in the currency market following the UK publication of Average Weekly Earnings figures which fell by -0.2% in June. This figure has shown a decline in wages for the first time since 2009.
However, UK Unemployment Rate fell to its lowest figure since 2008 at only 6.4%.
The Bank of England stated: ‘Uncertainty about how much slack there is has increased in recent months, in part reflecting labour-market outturns. [The Monetary Policy Committee (MPC)] noted the importance of monitoring the expected path of costs, particularly wages, in assessing inflationary pressures.’
Furthermore the Canadian data reflecting the Net Change in Employment figures published on Friday 8th August have been found to be incorrect, with amendments being made and the statistics due to be republished on Friday 15th August with no indication as to if the figure will be more favourable.
The initial data suggested only 200 jobs had been created in Canada, a shock considering economists had expected 24.0K.
The data agency that compiles the figures stated: ‘An error has been detected in the processing of the Aug 8th Labour Force Survey release. The error impacts only the July 2014 estimates.’
Scotiabank commented: ‘Taking the very rare step of using formal correction… suggests that this will not be a minor revision. I don’t know why they’d wait until Friday… if they know they have an error now.’
The data agency continued: ‘Statistics Canada takes this matter very seriously and is immediately launching a review of the data verification processes in place.’
For now the Canadian Dollar to Pound exchange rate looks set to remain bullish; however, the Canadian New Housing Price Index figures set to be published on Thursday, followed by UK Gross Domestic Product and Canadian Exisiting Home Sales statistics on Friday may affect the CAD to GBP exchange rate.
The present Pound to Canadian Dollar currency pairing is trading at 1.8262.