Pound to Canadian Dollar (GBP/CAD) Exchange Rate Trending High due to Absence of Data
The Pound to Canadian Dollar (GBP/CAD) exchange rate is presently trending higher in the region of 1.7758. This session has witnessed highs of 1.7759, whilst also stooping to lows of 1.7657 thus far.
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The Pound has seen gains on Tuesday following a speech made by Governor for the Bank of England (BoE) Mark Carney, who stated that wages were likely to begin rising mid 2015, and interest rate hikes could materialise in the Spring.
Carney stated that workers ‘deserved’ a wage boost, stating: ‘Employment does much more than provide the means to support workers and their families; it is essential to personal fulfilment and human dignity. Part of that dignity is being paid a living wage.’ Furthermore, Carney commented that he saw unemployment falling lower to 5.5%, whilst he also reiterated his concern that there is still some remaining slack in the UK job market; a fact that has been stated by the Governor before.
However, Tuesday saw the Governor treading carefully with his clear insistence that the Bank of England wouldn’t act under a timetable for the rate of increases.
The Canadian Dollar initially fell soft against other majors following Friday’s release of poor employment data. Economists had forecast the Net Change in Employment statistic to show the creation of 10.0K jobs; however, the reality highlighted the contraction of 11,000 positions in the job market.
Since the recent Canadian employment fiasco(where figures were wrongly published), Scotiabank representatives were hesitant of Friday’s releases stating it seemed ‘very fishy’. However, others have accepted the figure and instead the spotlight turned to the question of self employment.
Economist Erin Weir stated: ‘When a large increase in self-employment coincides with a large drop in positions paid by an employer, it begs the question of whether Canadians are becoming self-employed by choice or because jobs are not available. One also wonders how many survey respondents are simply more comfortable reporting themselves as self-employed rather than unemployed.’
In the latter half of this week the Pound to Canadian Dollar exchange rate may be subject to fluctuation following the release of Canadian domestic data such as Capacity Utilisation and the New Housing Price Index. Moreover, the Pound may see some further encouragement in its exchange rates with other majors as the week continues with influential events taking place. Wednesday will see Carney speak again alongside other members of the Bank of England in reference to August’s Inflation Report which may follow the Governor’s optimistic outlook seen today.
The Pound Sterling to Canadian Dollar exchange rate is currently trending in the region of 1.7732.
Given the absence of domestic data pertaining to both the UK and Canada the Pound to ‘Loonie’ (CAD) exchange rate has continued Tuesday’s bullish behaviour. The uptrend was triggered by Bank of England Governor Mark Carney who stated that he is against the idea of Scotland retaining the Pound should they gain independence.
Expect a little more volatility in the Sterling to ‘Loonie’ exchange rate on Wednesday afternoon with the solitary Canadian economic data publication (Capacity Utilisation Rate) and the testimony on the August inflation report given by high-profile policymakers at the Bank of England.