Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Fluctuates Canadian after Positive Data
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The first half of the day saw a surge for the Pound following some positive domestic data publications. The exchange rate softened again in the afternoon after Canadian Gross Domestic Product data showed better-than-expected growth.
The Pound Sterling to Canadian Dollar exchange rate is currently trending in the region of 1.7975.
The Pound has had a difficult week thus far after an absence of market moving economic data enabled the continuation of the bearish run.
Sterling’s difficulties were not helped by a string of unimpressive domestic data publications pertaining to the Eurozone. Particularly detrimental, given the intimate trading relationship between the UK and the Eurozone, was the manufacturing data which failed to meet with the forecast figure.
Another contributing factor to the demise of the Pound is the current debate surrounding the Scottish referendum. The lack of direction, in terms of gauging whether it will be a successful campaign or not, has caused investors to steer clear of Sterling in order to invest in currencies with less risk attached.
The Canadian Dollar has somewhat emulated Sterling’s bad performance over the course of the week, and for similar reasons. There has been a distinct lack of influential, market moving data in the Canadian economic calendar to curtail the downtrend caused by disappointing data at the close of last week.
Another reason for the soft ‘Loonie’ (CAD) was the impressive performance of the US Dollar. The mounting geopolitical tension between Russia and Ukraine has seen many investors adopt risk aversion tactics, and the safe haven qualities of the US Dollar increased demand dramatically, leaving the commodity-based Canadian currency in the dark.
Fortunes for the Canadian Dollar changed on Wednesday, however, when the fast-food giant Burger King announced a deal to buy a huge chain of Canadian doughnut and coffee shops. Demand for the ‘Loonie’ is likely to hike significantly during the refurbishment period.
The Pound Sterling to Canadian Dollar exchange rate has hit a low today of 1.7947.
Friday morning revealed British economic data publications to have positive results. The GfK Consumer Confidence Survey was forecast to decline by -1 having shown a retraction of -2 previously. The actual data revealed a surprising surplus figure of 1.
Also Nationwide House Px outperformed expectation in August printing at 0.8% having been forecast at 0.1%. The yearly, non-seasonally adjusted Nationwide House Px was forecast to grow by 10.2% having hit 10.6% previously. The actual data, however, showed a growth of 11.0%.
The effect of these positive domestic data publications was to see the Pound strengthen across the board, including against the Canadian Dollar.
However, the Canadian Dollar has gained against the Pound on Friday afternoon after a better-than-forecast Gross Domestic Product (GDP) publication. Year-on-year Gross Domestic Product was forecast to grow by 3.0% having shown an increase of 2.3% previously. The actual data revealed the GDP growth to have reached 3.1%.
A positive GDP result has somewhat overshadowed a less impressive economic data publication. The Industrial Product Price was forecast to retract by -0.2%, but the actual result showed a retraction of -0.3%.
The Pound Sterling to Canadian Dollar exchange rate has hit a high today of 1.8025.