British Pound to Canadian Dollar Exchange Rate Today - GBP CAD Trades Higher as Sterling Widespread Gains

September 15, 2014 - Written by Frank Davies

STORY LINK British Pound to Canadian Dollar Exchange Rate Today - GBP CAD Trades Higher as Sterling Widespread Gains

The British Pound to Canadian Dollar exchange rate (GBP/CAD) is set to experience chopping trading conditions throughout the remainder of this week, as the markets grow nervous ahead of Thursday’s Scottish Referendum vote.

Earlier in Monday’s session, the Pound was finding support against the Canadian Dollar and other major peers after a number of polls released on Sunday mostly showed that support for Scottish Independence is waning.
Warnings that Scotland leaving the UK could have negative repercussions for Scotland seem to have aided support for the better together campaign. Several major businesses and banks have warned that leaving would result in a loss of jobs and higher costs. Uncertainty as to what currency an independent Scotland would use was also thought to be bolstering support for staying together.

Four polls were published over the weekend with three out of the four showing support for the no campaign. The only report to show a lead for the yes vote was published in the Sunday Telegraph newspaper and showed that the yes campaign was leading by eight per cent.

With the polls not showing a clear winner economists are growing increasingly nervous as the vote draws closer. As seen in Monday’s session, one minute the Pound is higher the next its lower.

‘The economic consequences of a Yes vote are still unclear, with uncertainty over currency predicted, though certainly weaker prospects for certain industries. As the three main UK parties and the Bank of England have all ruled out a currency union, Scotland would have to choose between a new “Scottish pound”, the euro, and unilateral adoption of the UK pound, where both of the latter two options would mean having no monetary independence. Scotland’s financial services industry would see a very negative outcome, with large numbers of job losses. The outcome is still in the balance, with the No campaign only a couple of percentage points ahead in the latest polls,’ said Alasdair Cavalla from the Centre of Economics and Business Research.

The Canadian Dollar meanwhile was able to make gains later in the session as fears over the referendum saw investors sell off Sterling. Also offering support for the ‘Loonie’ was the publication of data, which weighed upon its US counterpart.

Industrial output across the USA fell by 0.1% last month, marking the first decline recorded since the start of the year. The data disappointed expectations for a rise of 0.3%.

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