UK Pound to Canadian Dollar (GBP/CAD) Exchange Rate Improves Today, Yen Higher

July 12, 2014 - Written by John Cameron

STORY LINK UK Pound to Canadian Dollar (GBP/CAD) Exchange Rate Improves Today, Yen Higher

The UK Pound to Canadian Dollar (GBP/CAD) exchange rate improves today, Yen edges higher - The Japanese Yen and Cdn Dollar have dominated the headlines in the global currency markets during this afternoon’s session.

The Loonie slumped by over half a percentage point against the Pound Sterling (currency:GBP) following the publication of last month’s labour market numbers which showed an unexpected increase in the overall level of joblessness in Canada from May’s 7.0% to 7.1%.

The latest key Canadian forex rates are:

- The Pound to Canadian Dollar exchange rate is 0.04 pct higher on the day 1.83773 GBP/CAD.
- The Canadian Dollar to Pound exchange rate is trading down 0.04 pct at 0.54415 CAD/GBP.

The job creation element of the figure also disappointed; analysts had been anticipating that some 20,000 new positions had been added to the Canadian payroll last month. When the figure showed at a 9,400 loss, investors shifted out of Canadian Dollar-denominated assets in their droves, sending the Pound to Canadian Dollar (GBP/CAD) exchange rate up to as high as 1.8343 during the morning equities session in North America.

Camilla Sutton of the Bank of Nova Scotia explained the rationale behind market participants’ move against the Loonie, observing earlier that the data is, ‘likely to feed the dovish tone coming from Governor Poloz.

Having employment still moderate at best would suggest there’s still slack in the economy and inflationary pressures won’t rise.’ The conventional wisdom amongst institutional investors is that the latest jobs numbers mean that an interest rate hike from the Bank of Canada is now firmly off the menu for the remainder of the year, meaning that the Canadian Dollar rate forecast is now firmly neutral to negative.

Japenese Yen Strengthens on Portugal Bank Crisis

Elsewhere, the Japanese Yen (JPY) has benefitted from ongoing concerns regarding the health of Portugal’s banking sector during today’s session, sending the Pound to Yen exchange rate down to an intraday low of 173.14 earlier on.

Richard Franulovich summed up the reasons behind this fresh bout of risk aversion in the markets, stating earlier that following yesterday’s missed debt repayment by Banco Espirito Santo’s parent company, ‘foreign-exchange investors are more cautious about to what extent there’ll be contagion effects, and where are the dead bodies floating out there.’

If more ‘dead duck’ banks emerge in the near-term, then the GBP JPY exchange rate is likely to ease back down towards the 170.00 threshold in the near-term.

Pound Sterling Forecast - Could See Movement on CPI

Looking ahead, next week’s Consumer Price Index numbers from the UK, due for publication on Tuesday morning, have the potential to send both Pound to Canadian Dollar (GBP/CAD) and Yen (GBP/JPY) exchange rates lower once more. If the annualised print for June shows at below May’s 1.5% level, then look for market whispers regarding an easing of policy by the Bank of England to gain traction.

Updated Canadian Dollar Exchange Rates (Sending Money From Canada) - 14/07/2014

The Pound to Canadian Dollar exchange rate is trading up +0.06% at 1.83803 GBP/CAD.
The Canadian Dollar to Australian Dollar exchange rate is trading down -0.18% at 0.99162 CAD/AUD.
The Canadian Dollar to Euro exchange rate is trading down -0.27% at 0.68340 CAD/EUR.
The Canadian Dollar to Pound exchange rate is trading down -0.06% at 0.54406 CAD/GBP.
The Canadian Dollar to New Zealand Dollar exchange rate is trading down -0.07% at 1.05713 CAD/NZD.
The Canadian Dollar to Dollar exchange rate is trading down -0.07% at 0.93141 CAD/USD.
The Canadian Dollar to Rand exchange rate is trading down -0.04% at 9.98719 CAD/ZAR.

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