GBP to CAD Exchange Rate Softens after Waning UK Retail Sales
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The aftermath of the publication of hawkish Bank of England (BoE) minutes, from their most recent monetary policy meeting, saw Sterling rocket upwards versus the majority of its major peers yesterday. The Canadian Dollar was also bolstered by better than forecast wholesale sales in June.
The Pound Sterling to Canadian Dollar exchange rate is currently trending in the region of 1.8164.
Yesterday the Pound saw a positive surge across the board after the Bank of England minutes from their most recent policy meeting revealed dissent amongst the policymakers. Martin Weale and Ian McCafferty voted against the continuation of the current interest rate arguing that the recent positive labour market data indicates that the British economy is ready for a rate hike.
Whilst only two of the nine pushed for an immediate rate increase; the fact that there was dissent, as opposed to the unanimity seen over the past few meetings, bodes well for speculation of an increase before the end of the year.
The Canadian Dollar was also boosted yesterday after wholesale sales data exceeded expectations. Having been forecast to gain by 0.4% the actual result impressed; showing growth of 0.6%. However the gains for ‘Loonie’ (CAD) were minimal as the bullish US Dollar dominated trader focus and ‘Greenback’ (USD) rose substantially.
Today there has been nothing in the way of Canadian domestic data, but the strength of the Canadian Dollar has suffered a little form the surging US Dollar.
British domestic data, one again, failed to impress; causing Sterling to lose some of the gains made yesterday. Year-on-year UK Retail Sales increased by 3.4% which was under the forecast figure of 3.5%. The impact of this negative data has seen the Pound drop versus nearly all of its major peers.
Poor data from the Eurozone has also dampened demand for the Pound.
The Pound to Canadian Dollar exchange rate has hit a low today of 1.8154.
Forecast for the Pound to Canadian Dollar Exchange Rate
There are no British domestic data releases tomorrow so any change is likely to be dictated by foreign currency movement.
The domestic data docket is particularly heavy for Canada tomorrow. The Core Consumer Price Index, Consumer Price Index and Retail Sales will all be of interest to those backing the Canadian Dollar. If the data set meets with forecast figure it is likely to go some way towards repairing the damage from increased US Dollar demand.
The Pound Sterling to Canadian Dollar exchange rate has hit a high today of 1.8218.