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Movement Forecast for Pound Sterling Canadian Dollar Exchange Rate GBP CAD

November 20, 2015 - Written by John Cameron

UK Mortgage Lending Reaches Highest Level since 2008



The Bank of England (BoE) has taken steps over the past two years to curb a potential property price bubble which threatens to hamper Britain’s nascent economic recovery.

Measures taken by the BoE to stop retail banks from giving ‘risky’ loans secured against properties have included a beefing up of income criteria for mortgage applicants and a more thorough investigation of the spending habits of loanees.

However, yesterday’s session provided evidence that the steps taken by the Old Lady of Threadneedle Street are failing to have their desired effect; official statistics from the Council of Mortgage Lenders (CML) found that the total value of property loans approved by Britain’s High Street banks reached its highest level since the 2008 global financial crisis last month.

The CML found that approvals for mortgage lending jumped to a total of $21.8bn during October – a massive uplift of close to 20% in comparison with October 2014.

Howard Archer of IHS Global Insight observed earlier that, ‘we expect house prices to see solid increases over the coming months amid healthy buyer interest and a shortage of properties.’

Such a move is forecast to send the Pound Sterling sharply higher against the other major global tenders.

GBP to CAD Conversion Rate Held above 2.03 Yesterday



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Elsewhere, today’s data highlight comes from Canada in the shape of this afternoon’s October inflation data; a year-on-year print of 1.0% is once again the anticipated outcome.

The Pound Sterling Canadian Dollar exchange rate established itself at above the 2.03 GBP CAD threshold yesterday in spite of some tepid UK shop sales numbers.

The Loonie badly needs a higher than 1.0% showing from this afternoon’s price rise figure in order to drag itself back down towards the two to one threshold against the Pound Sterling once more. Anything other than this and the GBP CAD exchange rate is forecast to enjoy further gains.

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