Pound Canadian Dollar Exchange Rate: GBP CAD Forecast To Fall On Stronger Canadian GDP numbers

April 1, 2014 - Written by John Cameron

STORY LINK Pound Canadian Dollar Exchange Rate: GBP CAD Forecast To Fall On Stronger Canadian GDP numbers

The Canadian Dollar (currency:CAD) was the big winner in the global currency markets yesterday afternoon following the publication of stronger than anticipated Gross Domestic Product growth data in Canada. January’s monthly increase of 0.5% in output from the export-driven Canadian economy cancelled out December’s drop of 0.5% in activity levels, suggesting that economic conditions are improving in the North American economy following a bitter winter. The news saw the Pound Canadian Dollar exchange rate drop back below the 1.8300 GBP/CAD threshold during later trading in London. The pair had been trading up above 1.8400 GBP/CAD during the early part of the session.

Elsewhere, the US Dollar suffered another blow during the middle part of yesterday’s New York session, when Federal Reserve Chairwoman Janet Yellen apparently backtracked on her comments of the middle part of last week when she suggested at a Development Conference in Chicago that she expects American interest rates to stay low ‘for some time’ thanks to the underperforming jobs market in the States. Yellen had commented less than a week ago that US interest rates might be on the march northwards within six months of Quantitative Easing finishing in the States, so her words of yesterday came as an unpleasant surprise to investors holding Dollar-denominated assets. The Buck took a hit of a result, sending the Pound US Dollar exchange rate up to as high as 1.6668 GBP/USD just before the European market shutdown.

Turning to today’s session, look out for the US ISM Manufacturing survey later on to provide the Greenback with further near-term direction. An improvement on February’s print is anticipated for the closely-watched gauge of activity in this key sector of the US economy – anything less than this and the Buck is likely to give up further ground against the other major currencies. Meanwhile, overall unemployment figures from the eurozone economy have the potential to provoke renewed movement for the Pound euro exchange rate later on today GBP/EUR.

Relevant Exchange Rates for Transferring Money to Canada (Updated: 10:15 GMT 01/04/2014)

The Pound Sterling to Canadian Dollar exchange rate is trading down -0.01% at 1.84171 GBP/CAD.
The Euro to Canadian Dollar exchange rate is trading up +0.2% at 1.52553 EUR/CAD.
The US Dollar to Canadian Dollar exchange rate is trading up +0.06% at 1.10600 USD/CAD.

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