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Exchange Rates: Pound to Dollar, Euro & Canadian Dollar Surges Following IMF Forecast Upgrade

April 8, 2014 - Written by Ben Hughes

Strong economic numbers from the UK and massively disappointing Canadian property construction figures have sent the Pound Canadian Dollar exchange rate spiralling to 1.8322 GBP/CAD earlier on. The pair had been languishing in the 1.8100s during the latter part of today’s Asian session, but developments either side of the Atlantic today soon put paid to that.

The Pound Sterling to Canadian Dollar exchange rate is trading up +0.39% at 1.83015 GBP/CAD. The Canadian Dollar to Pound Sterling exchange rate is trading down -0.39% at 0.54640 CAD/GBP.



The Canadian Dollar remains highly susceptible to bad news from its property / construction sectors because of the impact which it has on investors’ expectations regarding the future direction of the Bank of Canada’s monetary policy. A year ago, when superstar central banker Mark Carney was still at the helm of Canada’s lender of the last resort, market participants were anticipating an interest rate hike sooner rather than later. However, the intervening period, which has brought the accession of Stephen Poloz to the top job at the BoC, has seen a dramatic change of tack with the BoC Governor adopting a neutral policy bias almost immediately after taking on the position. With the direction of any alteration to domestic interest rates now firmly in the balance, investors are taking more of an interest than ever in Canadian housing market figures.

There was further good news for the UK economy and for the Pound a few moments ago when the International Monetary Fund stated that it expects Britain to be the fastest-growing economy in the G7 this year. The IMF’s estimate of a 2.9% expansion marked a pronounced upward revision from its January forecast of 2.4%. The figure backs up this morning’s extremely positive UK Industrial and Manufacturing Production numbers which both thrashed expectations. The Q2 GDP growth number for the British economy is due for publication shortly and given the noises coming from the IMF and this morning’s UK economic statistics, investors holding Sterling-denominated assets could receive a considerable boost to their portfolio sooner rather than later.

Today's Pound / Euro / US Dollar / Canadian Dollar Exchange Rates (As of: 16:00 GMT 08/04/2014)



The Pound Sterling to Canadian Dollar exchange rate is trading up +0.39% at 1.83015 GBP/CAD.
The Pound Sterling to Euro exchange rate is trading up +0.47% at 1.21423 GBP/EUR.
The Pound Sterling to US Dollar exchange rate is trading up +0.83% at 1.67460 GBP/USD.
The Euro to Canadian Dollar exchange rate is trading down -0.08% at 1.50726 EUR/CAD.
The Euro to Pound Sterling exchange rate is trading down -0.47% at 0.82357 EUR/GBP.
The Euro to US Dollar exchange rate is trading up +0.36% at 1.37915 EUR/USD.
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