Pound to Canadian Dollar - GBP to CAD Exchange Rate Softens on CBI report, Oil Prices Fall

June 8, 2015 - Written by James Fuller

STORY LINK Pound to Canadian Dollar - GBP to CAD Exchange Rate Softens on CBI report, Oil Prices Fall

Pound to Canadian Dollar Exchange Rate Weakens on CBI report, Oil Prices Fall

The Pound Sterling to Canadian Dollar exchange rate softened as the UK currency was weighed upon by a disappointing growth report released by the Confederation of British Industry (CBI) and concerns over the proposed European Referendum. Further gains for the Canadian Dollar however, were held in check as oil prices fell.

The CBI cut its growth forecasts for the UK economy and warned that it would be vulnerable to a possible messy end to the ongoing crisis in Greece and would be volatile as the debate over Britain’s membership of the European Union heats up. The business group cut its Gross Domestic Product forecasts for 2015 from 2.7% to 2.4% and its 2016 forecast from 2.6% to 2.5%. The report also showed that the CBI wants the government to continue its austerity measures, despite warnings that another round of cuts could impact upon the recovery.

‘The UK will remain up among the lead runners in the pack of G7 economies over the next couple of years. But there is an imminent threat of breakdown of talks in Greece and a more slow-burn risk of weak productivity growth. While we are seeing a strong domestic picture, cracking the productivity conundrum would really help cement the recovery. Overseas, the picture is less rosy. The Eurozone has regained some momentum this year, thanks in part to the European Central Bank’s quantitative easing programme, but growth is unlikely to pick up much further as the initial boost from falling oil prices fades,’ said CBI director of economics, Rain Newton-Smith.

The Pound could regain ground on Tuesday if the latest UK balance of trade figures come in positively. Economists are expecting the nation’s trade deficit to narrow from £-2.817 billion to £-2.3 billion.
Further gains for the Canadian Dollar were restrained as the price of crude oil fell again. Prices fell after the Organisation of Petroleum Exporting Countries (OPEC) announced that it would not reduce its production levels. Concerns of an oversupply in the market were further heightened after Iran said that it could double its oil exports over the next six months if international sanctions are lifted. OPEC announced that it will keep its output quota at 30 million barrels per day.

‘If a nuclear deal emerges and oil sanctions are lifted partially or completely, we’re going to see more Iranian oil coming onto the market,’ said an energy consultant.

The Canadian Dollar could see further movement if upcoming Housing starts and building permits data come in positively.

What are today's Canadian Dollar exchange rate levels against the Pound, the Euro and the US Dollar?

The Pound to Canadian Dollar exchange rate is -0.15 pct lower with a conversion rate of 1 GBP equals 1.89934 CAD.
The Euro to Canadian Dollar exchange rate converts +0.78 per cent higher at 1 EUR is 1.39449 CAD.
The US Dollar to Canadian Dollar exchange rate today is converting -0.27 per cent lower at 1.24294 USD/CAD.
The Swiss Franc to Canadian Dollar exchange rate today is converting +0.36 per cent higher at 1.32952 CHF/CAD.
The Hong Kong Dollar to Canadian Dollar exchange rate converts -0.26 per cent lower at 1 HKD is 0.16034 CAD.
The Australian Dollar to Canadian Dollar exchange rate is +0.17 pct higher with a conversion rate of 1 AUD equals 0.95080 CAD.
The New Zealand Dollar to Canadian Dollar exchange rate today is converting +0.45 per cent higher at 0.88166 NZD/CAD.

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