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Pound to Canadian Dollar (GBP/CAD) Exchange Rate Higher as OPEC Meeting Comes into Focus

November 24, 2014 - Written by James Fuller

Our latest Pound Sterling (currency:GBP) and Canadian Dollar (currency:CAD) exchange rate report.



cad exchange ratesThe Pound strengthened against the Canadian Dollar as market attention shifted to an upcoming meeting of the Organisation of Petroleum Exporting Countries (OPEC) where economists will be looking for any signs that oil production could be cut.

Increased oil production by a number of OPEC members has seen the price of oil tumble in recent months and as oil is Canada’s biggest export the North American nation’s economy has been negatively impacted.

As market attention focused upon the OPEC meeting, the Canadian Dollar gave back some of last week’s gains that had been achieved because of stronger than forecast inflation data. After the report was released, the ‘Loonie’ advanced to a three-week high against the US Dollar and made gains against several other major economies.

Core consumer prices in Canada, which exclude the eight most volatile items, rose 0.3% in October; more than the expected 0.2% gain, after a 0.2% increase the previous month.

US to Canadian Dollar Exchange Rate Outlook



‘The Canadian Dollar last week strengthened on the week after that stronger than expected inflation print, but going into the open today we’re a little bit weaker.

It’s a mixed US Dollar environment with the European strong and most the growth currencies weak,’ said Camilla Sutton, chief currency strategist at Scotiabank.

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With the OPEC meeting in focus, economists are sceptical that the group’s members will reach a consensus as to whether to taper supply.

Some commodity speculators are forecasting that oil prices could fall even further to $60 per barrel if OPEC does not agree upon a significant cut.

A cut in production is likely as if none is announced OPECs reputation will be tarnished.

‘The market would question the credibility of OPEC and its influence on global oil markets if there was no cut. Herding behaviour and a shift to net negative speculative positions should accelerate the price plunge,’ said Daniel Bathe of Lupus Alpha Commodity Invest Fund.

Pound to Canadian Dollar Exchange Rate Forecast



Also weighing upon the CAD is market expectations for economic growth data due for release later in the week.

Statistics Canada is due to release the nation’s latest GDP figures on Friday and economists are expecting that the figure will show a rise of 0.4%.

The Pound meanwhile managed to advance against several major peers including the ‘Loonie’ as it found support from speculation that the currency will be supported by relatively high interest rates when compared to the Eurozone and Japan.

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