Pound Sterling Canadian Dollar Exchange Rate Rallies after Commodity Prices Disappoint ?Loonie? Investors

September 12, 2016 - Written by David Woodsmith

STORY LINK Pound Sterling Canadian Dollar Exchange Rate Rallies after Commodity Prices Disappoint ?Loonie? Investors

Pound Sterling Update: GBP Still in Demand against BCC’s Forecast of Sliding UK Future Growth

The latest UK domestic data should have made investors pause for thought, although on the face of it, Pound (GBP) exchange rates have largely risen despite the apparent negativity.

The data in question came from the British Chambers of Commerce (BCC), which cut its predicted UK growth in 2016 and 2017 from 2.2% to 1.8% and from 2.3% to 1% respectively.

In spite of this alarming deterioration in expectations, however, BCC officials did admit that they saw the chances of a UK recession in this year or the next one as unlikely.

Pound Sterling Exchange Rate Gains Possible on Tomorrow’s UK Inflation Rate Results, GBP/CAD Could Edge Higher

The next UK ecostats likely to impact the Pound Sterling to Canadian Dollar (GBP/CAD exchange rate is the nation’s August inflation rate results, due tomorrow; a reprint at 0.6% has been predicted on the year. For the annual core figure, a marginal rise from 1.3% to 1.4% is forecast.

Wednesday will bring the UK’s claimant count change for August, as well as the July unemployment rate figure. A small reduction in claims is on the cards, along with a rise in unemployment from 4.9% to 5%.

Thursday’s major UK news will come from the Bank of England (BoE), when the central bank makes its September interest rate decision; at present, no change is expected from 0.25%.

Canadian Dollar (CAD) Roundup: Commodity Costs Down, BOC Speech due This Week

The Canadian Dollar (CAD) has opened trading poorly today, having slumped against its peers due to diving prices for both gold and crude oil.

CAD exchange rates dipped slightly at the close of last week as Canada's unemployment rate was shown to have risen unexpectedly.

Canadian economic data this week is set to be sparse, with the first notable news being a speech from Bank of Canada (BOC) official Christopher Wilkins.

Closing off trading on Friday will be Canada’s July manufacturing sales, which previously came in positively at 0.8%.

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TAGS: Currency Predictions Pound Canadian Dollar Forecasts Pound Forecasts