Best Canadian Dollar Exchange Rates Today - Pound Sterling at Four Day High Against Cdn Dollar

August 4, 2014 - Written by Frank Davies

STORY LINK Best Canadian Dollar Exchange Rates Today - Pound Sterling at Four Day High Against Cdn Dollar

The Pound to Canadian Dollar was able to advance to the best exchange rate levels seen in four days as the Canadian markets remained closed for a national holiday. Against the US Dollar the ‘Loonie’ declined to its lowest level in eight weeks.

Sterling made gains against the ‘Loonie’ after it found support from the publication of a positive construction Purchasing Managers Index report.

The data compiled by Markit showed that house building in the UK accelerated at its fastest pace since November 2003. The report also showed that the pace of job creation climbed to a record high.

The monthly compiled Construction sector PMI eased to 62.4 in July down from the reading of 62.6 in June.

Despite the slight decline the figure was above economist expectations for a figure of 62.0. Any figure above 50 indicates expansion, whilst a number below indicates contraction.

House-building was the strongest performing category in the PMI as construction activity grew for the 15th successive month, with hiring accelerating at the fastest rate since at least April 1997 when the survey began.

"July's figures suggest the UK construction sector is enjoying its strongest cyclical upswing since the global financial crisis, while a new record rise in employment highlights that construction firms are increasingly confident about the sustainability of the upturn," said Tim Moore, senior economist at Markit.

Also weighing on the Canadian Dollar was the closure of the nation’s financial market and a decline in oil prices.

Oil is Canada’s biggest commodity export.

Crude fell for a sixth consecutive week as softer demand for petrol prices weighed upon fuel prices.

The Canadian currency could recover ground on Wednesday if the latest Canadian balance of trade data shows a further narrowing of the deficit.

Sterling too could regain some ground against peers like the US Dollar and Euro if manufacturing and industrial production data comes in better than forecast.

Economists are expecting that manufacturing production recovered from the decline seen in May rallied in June. Year on year industrial production meanwhile eased.

After those releases comes the Bank of England’s latest monetary policy meeting on Thursday. Economists are widely forecasting no change to interest rates or its month quantitative easing programme.

“Construction output only accounts for 6.3% of GDP. Much attention will now be focused on the purchasing managers’ survey for the dominant services sector for July which comes out on Tuesday.
The robust construction purchasing managers’ maintains uncertainty over when the Bank of England will first edge up interest rates, given that it follows a softer manufacturing survey. It remains a very close call as to whether the Bank of England will act at the end of this year or hold off from raising interest rates until early-2015. Much will clearly depend on what happens with wage growth over the coming months as well as the economy’s overall performance. The services sector has been driving UK growth (it expanded 1.0% quarter-on-quarter in the second quarter) so the July services purchasing managers survey will provide important evidence as to whether UK growth is losing a little momentum.... What is certain is that the Bank of England will keep interest rates at 0.50% at the end of the August MPC meeting on Thursday,” said Howard Archer from IHS Global Insight.

Against the US Dollar the Canadian Dollar was holding near to its lowest level for eight-weeks on investor concerns over the diverging economies of the two North American countries.

Latest GBP/CAD News - 05/08/2014

The Canadian Dollar eased against the Pound and remained under pressure against the majority of its major peers as economists focus on events elsewhere. The next piece of market moving data due for the ‘Loonie’ comes on Friday with the release of the latest unemployment data. Sterling meanwhile could push higher if today’s services PMI report comes in strongly.

The Canadian Dollar to Australian Dollar exchange rate is trading down -0.24% at 0.98026 CAD/AUD.
The Canadian Dollar to Euro exchange rate is trading up +0.07% at 0.68358 CAD/EUR.
The Canadian Dollar to Pound exchange rate is trading down -0.26% at 0.54220 CAD/GBP.
The Canadian Dollar to New Zealand Dollar exchange rate is trading down -0.22% at 1.07349 CAD/NZD.
The Canadian Dollar to US Dollar exchange rate is trading down -0.16% at 0.91537 CAD/USD.

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