Canadian Dollar to Pound (CAD/GBP) Exchange Rate Softening; Pound Gaining
If you're looking to make an international money transfer, we recommend TorFX.
This session has seen the ‘Loonie’ trading between the region of 0.5423 at its pinnacle and 0.5436 at it’s lowest point thus far.
The Canadian Dollar has been tepid as oil prices have fluctuated in the wake of Iraq escalations and harsh sanctions are enforced by the US and EU against Russia, with Russia placing its own bans on importations as retaliation.
Currency expert Sam Tuck commented: ‘The headline that Russia is looking to de-escalate the Ukrainian situation has seen a bit of stability return to the market. We’re reversing some of the flight to safety.’
Moreover, the Canadian Dollar is trading following highly disappointing figures from Friday that showed only 200 jobs were created in July despite economists’ forecasts of a whopping 24.0K expected to materialise. Conversely unemployment in Canada dropped unexpectedly from 7.1% to 7.0%.
The Pound however is trading in anticipation of this week’s Bank of England’s (BoE) Inflation Report on Wednesday, which if favourable, could push Monetary Policy Committee (MPC) closer to raising interest rates.
Last week signalled the BoE’s decision to allow interest rates to stagnate; however, the meeting minutes are highly anticipated to discover whether the vote was unanimous, as it has been since 2011.
However economists are speculating over the position of the rate hikes, with some suggesting late 2014 is a possibility.
Economist Howard Archer stated: ‘ If the report is largely upbeat… it will advance the case for an interest rate hike before the end of 2014 and it could well have caused one or more of the more hawkish MPC members to have voted for a rate hike at the August meeting.’
However, some have speculated that the UK economy still has slack remaining, lending to 2015 for a more appropriate time to raise rates.
Archer continued: ‘If it focuses more on ongoing low earnings growth and some recent signs that the growth rate could be edging back, it will fuel belief that the Bank of England will hold fire until 2015.’
Influential figures for this week will come by way of the UK Bank of England Inflation Report on Wednesday, which is hoped will prove favourable for the presently floundering Pound in the currency market.
Meanwhile in a fairly quiet week for Canadian data this week, Thursday will see the release of the New Housing Price Index, whilst Friday will show Existing Home Sales figures for July.
The GBP to CAD exchange rate is presently trending at 1.8395 in the currency market.