GBP CAD and GBP NOK Exchange Rate Forecasts Improve on Oil Inventory Data

September 15, 2016 - Written by Ben Hughes

STORY LINK GBP CAD and GBP NOK Exchange Rate Forecasts Improve on Oil Inventory Data

Further Gains for Pound Sterling to Canadian Dollar, Norwegian Krone Exchange Rates Today

The Pound to Canadian Dollar (GBP CAD) and Pound to Norwegian Krone (GBP NOK) exchange rates gained on Wednesday as oil prices came under further pressure.

Global oil prices took a hit during yesterday’s afternoon session following the publication of a decidedly mixed set of US energy inventory data.

Initial Gains for Canadian Dollar, Norwegian Krone Reversed

Initially, the price of a barrel of Brent Crude oil spiked higher after the latest weekly statistics from America’s Energy Information Administration (EIA) revealed that stockpiles of oil in the world’s premier economy shrank by over half a million barrels.

On the face of it this was a good result for oil-producing nations; however, the spike in prices proved short-lived and the price of Black Gold was soon on the march lower once more as investors priced-in a pronounced increase in the level of stockpiles of distillates, (domestic grade oils including heating oil and diesel). The price of a barrel of Brent Crude had been bumping around the middle part of the $47 during morning trading in Europe but by the latter part of the North American session, had fallen back to just above the $46 threshold.

Analysis published by Commerzbank suggested that the recent actions of OPEC (Organization of the Petroleum Exporting Countries) nations was providing additional downward pressure on global oil prices. Commerzbank’s research note observed that,

‘Rather than talking about capping oil production as it was planning to do at the end of September, OPEC would be better advised to think about reversing the production growth of recent months.’

Pound Sterling to Canadian Dollar (GBP CAD) Exchange Rate Hits High of 1.74

The Pound Sterling (currency : GBP) improved against the petro currencies as a result of the data, with the Pound Norwegian Krone (currency : NOK) exchange rate edging Northwards from an intraday low of 10.8226 GBP NOK to touch 10.9190 late on. Meanwhile, the Pound Canadian Dollar exchange rate broke back above the 1.7400 GBP CAD level having started the day in the very low end of the 1.7300s. Analysts forecast that there could be further gains to come for both GBP CAD and GBP NOK if oil prices continue trending lower.

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