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GBP CAD Exchange Rate Today: Pound to Canadian Dollar FX Pair Gains on Oil Price Fall

October 13, 2014 - Written by Frank Davies

The British Pound to Canadian Dollar (GBP/CAD) advanced on the exchange rate markets today as falling commodity prices and mounting concerns over the state of the global economy weigh upon sentiment for riskier assets.



canadian dollar exchange rates vs poundThe safe haven currencies of the Swiss Franc (CHF), Japanese Yen (JPY) and US Dollar (USD) were all finding support.

Oil is Canada’s biggest export product and a sharp slide in prices of the commodity has negatively affected upon the weakening Canadian Dollar (CAD).

Prices fell as supplies remain high and as demand wanes due to a slowing global economy. The folowing currency rates were updated as of 22:00 UK Time:

The Pound to Canadian Dollar exchange rate converts +0.03 per cent higher at 1 GBP is 1.80082 CAD.
The Euro to Canadian Dollar exchange rate converts +0.96 per cent higher at 1 EUR is 1.42764 CAD.
The US Dollar to Canadian Dollar exchange rate is +0.08 pct higher with a conversion rate of 1 USD equals 1.11965 CAD.
The Hong Kong Dollar to Canadian Dollar conversion rate is +0.07 pct higher at 0.14433 HKD/CAD.
The Yen to Canadian Dollar exchange rate today is converting +0.58 per cent higher at 0.01048 JPY/CAD.

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Output of Oil from other major producers has sent prices tumbling in recent weeks.

According to its monthly report, OPEC announced that production increased by 402,000 barrels a day last month to a total of 30.47 million barrels per day.

The figure is the highest level of production since the summer of 2013.

The falling commodity prices was enough to drag the CAD lower against most of its major peers (i.e. GBP, EUR, USD and AUD) and caused economists to ease away from the rises generated in the previous week by a positive unemployment report.

According to Statistics Canada, the nation’s unemployment rate fell to a seasonally adjusted figure of 6.8% last month and was a drop from the 7% seen in the preceding month, it was the lowest figure recorded since December 2008.

Also putting pressure on the Canadian Dollar was news that Canadian Pacific Railway Ltd. was rebuffed by US Railroad CSX.Corp with a merger proposal last week. A merger would have meant that the new entity would have had a market value in the region of $62.5 billion. The failure of the move disappointed some sections of the market.

Trade of the Canadian Dollar was light at the start of the week due to the Canadian markets being closed for the Thanksgiving Day Holiday. Trade was also light because of the closure of the US market for the Columbus Day Holiday and the Japanese market is closed.

Pound Sterling to Canadian Dollar Rate Forecast



With a lack of market, moving data the GBP/CAD is likely to experience little movement.

That could change as the week progresses however as if the latest Eurozone, US and UK data comes in softer than forecast we could expect demand for safe havens to rise again.

This week sees the publication of the latest Canadian inflation data.

The figures are forecast to create some movement for the ‘Canadian Dollar.

Economists are expecting inflation to rise from 0% to 0.16% on a monthly basis.

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