Pound Sterling Exchange Rate Rises against the Canadian Dollar (GBP/CAD) and Softens versus the US Dollar (GBP/USD) despite Positive UK Data
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast to Tick Higher despite Crude Price Jump
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate edged higher by around 0.2% on Friday morning.
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Despite the fact that British economic data produced positive results on Friday, the Pound declined versus the majority of its most traded currency competitors. The depreciation can be linked to speculation that the economic troubles in China will have a detrimental impact on Bank of England (BoE) monetary policy outlook. With widening divergence between nations in terms of economic growth many traders have been forced to delay bets of a first-quarter rate hike in 2016 to the third-quarter.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 2.0361.
Despite the fact that oil prices jumped the most since 2009, the Canadian Dollar is trending lower versus most of its currency rivals. The depreciation can be linked to fears that the recent slump in oil prices will have a lasting impact on Canadian growth and the Bank of Canada (BOC) will be forced to loosen momentary policy to accommodate for the shortfall. After a few days of market readjustment following Monday’s chaos, commodity-correlated currencies like the ‘Loonie’ (CAD) have settled at more appropriate levels.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending within the range of 2.0307 to 2.0418 during Friday’s European session.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Tick Lower ahead of US Personal Consumption Data
The Pound Sterling to US Dollar (GBP/USD) exchange rate softened by around -0.2% on Friday morning.
Although it had minimal impact on Sterling movement, Friday’s positive UK data will buoy hopes for a Q1 rate hike. GfK Consumer Confidence was forecast to hold at 4 in August, but the actual result reached 7. On the year, the second estimates for second-quarter UK Gross Domestic Product equalled the market projection of 2.6% growth. On a quarterly basis, second-quarter GDP also met with the market consensus of 0.7%.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5390.
Having advanced since Monday on positive domestic data publications, the US Dollar halted gains during the early stages of Friday’s European session. The US asset is generally holding steady versus most of its peers ahead of personal consumption data. A slight depreciation can be attributed to fears that China’s economic woes will cause the Federal Open Market Committee (FOMC) to delay a Federal Reserve rate hike into 2016.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the range of 1.5361 to 1.5443 during Friday’s European session.