Gains Expected for British Pound to Canadian Dollar GBP CAD Exchange Rate

August 5, 2015 - Written by Toni Johnson

STORY LINK Gains Expected for British Pound to Canadian Dollar GBP CAD Exchange Rate

Rising Oil Prices Fail to Lend Canadian Dollar (CAD) Support

The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate remained close to a seven-year high on Wednesday despite oil prices edging back above 50 dollars a barrel, If today's 'Super Thursday' of BoE announcements lives up to expectations, we could see the GBP/CAD currency pair achieve a fresh high before the weekend.

Earlier...

BoE Decision and Minutes to Drive GBP to CAD, EUR, USD, AUD Exchange Rate Trading This Week

Tomorrow’s session brings the first ever Bank of England (BoE) ‘Super Thursday’. Throughout its history, the Old Lady of Threadneedle Street has made its monthly monetary policy announcement during the first week of the month with the minutes of the policy meeting being published two weeks later.

However, as part of his modernising mandate, BoE Governor Mark Carney has altered this and for the first time ever, tomorrow will see the minutes and the decision will be released concurrently. The development will bring the UK’s central bank in line with other major global reserve banks including the Reserve Bank of Australia and the US Federal Reserve, but will it make much difference to market participants’ view on the UK economy and the Pound Sterling (currency : GBP)? Our leading currency analyst takes a look at this matter below...

Split MPC Vote Could Drive Pound Sterling to Canadian Dollar Exchange Rate to New Multi-Year Best Level

Leading market commentator and former external member of the Bank of England’s Monetary Policy Committee (MPC) Sushil Wadhwani stated earlier that he, ‘will read the concluding section of the minutes first, then I will read the summary of the Inflation Report, and the projections. In that sequence.’ The implication is that the tone of the Bank’s commentary will now overtake the decision itself as being of prime importance.

However, Wadhwani went on to make a bold forecast that UK interest rates will be on the way up this side of Christmas. He sees the wobble in China’s vast economy as the key determinant of when the BoE hikes its key lending rate, explaining that, ‘we'll know a lot more about China in three months' time. I don't think the costs of waiting three months are that great. November is an obvious time to look at this because we'll know a lot more.’

Global Growth Forecast Negatively Revised, Higher Risk Currencies like CAD, AUD, NZD Decline

Elsewhere, there was yet more bad news for the export-driven high-yielding Commodity Dollars earlier when the widely-respected National Institute of Economic and Social Research (NIESR) downwardly revised its growth forecast for the global economy from a previous 3.2% to 3.0%. The significant downward move is likely to trigger further falls in wholesale oil prices, weakening the Canadian Dollar (currency: CAD) and the Norwegian Krone (currency : NOK) in particular.

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TAGS: Canadian Dollar Forecasts Daily Currency Updates Dollar Po Forecasts