GBP to CAD Exchange Rate Rallies after UK Data Exceeds Expectations
The Pound to Canadian Dollar exchange rate has held relatively steady today due to an absence of influential economic data pertaining to either country.
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Given the absence of important, influential market moving data to curtail the current trend; Sterling has continued the bearish behaviour seen at the tail end of last week.
The ‘Loonie’ (CAD) has had a very similar journey to that of the Pound this week. Having posted less-than-desirable results in their domestic data publications on Friday; ‘Loonie’ has had very little by way of economic data to affect a change in the downward trend.
Throughout the course of the week the Pound Sterling has suffered from the ongoing Scottish Referendum debate. The general indecision and increasing unknowns have caused traders to steer clear of the Pound in order to invest in less risky currencies.
Sterling’s problems have been compounded by increasingly poor data from the Eurozone. Given the substantial trading relationship between the UK and the Eurozone; the negative domestic data has had a lasting detrimental effect with particular reference to last Thursday’s Eurozone Manufacturing PMI, which proved to be less-than-adequate .
The Canadian Dollar has suffered over the course of the week due to the bullish US Dollar. As the ‘Buck’ (USD) monopolised trading its neighbour currency softened as a consequence.
Wednesday had seen a slight reversal in fortune for the ‘Loonie’ after fast food giant Burger King announced its intention to buy Canadian coffee and doughnut tycoon Tim Hortons. The new merger saw shares in both companies rocket, and demand for the Canadian Dollar was bolstered. As the business moves forward demand for the ‘Loonie’ is likely to increase due to the need to use the Canadian currency for buying supplies and refurbishment etc.
The Pound Sterling to Canadian Dollar exchange rate has hit a low today of 1.7962.
Thursday’s UK economic data has little consequence in terms of wider market movement, but may be of interest to those wanting to gauge the current British economic standing. The Lloyds Business Barometer fell to 47 from the figure of 52 previously posted. The CBI Reported Sales exceeded expectations posting at 37 despite only having been forecast to reach 27.
Similarly to that of the UK; the Canadian domestic data has had little influence over the strength of the ‘Loonie’ or market movement. The Average Weekly Earnings rose by 3.3% compared to the previous growth of 2.4%. Second quarter Current Account data printed at -11.9 billion.
Those invested in the Pound will be pleased to see that the bearish run of Sterling has finally been reversed after Friday’s domestic data publications exceeded expectations.
The GfK Consumer Confidence Survey hit a surplus figure of 1 despite having been forecast to retract by -1. Also the Nationwide House Px showed growth of 0.8% in August having only been forecast to show growth of 0.1%. The yearly Nationwide House Px printed at 11.0% growth which was more than both the forecast figure and the previous figure.
Later on Friday there are several important Canadian domestic data publications. The most influential of these, in terms of market movement, will be the year-on-year Gross Domestic Product data. With such influential data due for publication, expect the Canadian Dollar to experience volatility throughout the course of the day.