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Pound Canadian Dollar (GBP/CAD) Exchange Rate Sinks as Rising Oil Prices Benefits ‘Loonie’

July 15, 2019 - Written by John Cameron

GBP/CAD Exchange Rate Falls as Hopes Rise on Canadian Growth


The Pound Canadian Dollar (GBP/CAD) exchange rate fell by -0.3% today and is currently trading around CA$1.632.

The Canadian Dollar (CAD) rose against the Pound (GBP) as oil prices rose due to supply disruptions and a weaker US Dollar following last week’s hints at a rate cut from the US Federal Reserve.

As Canada trades main export is crude oil, this has provided an uplift for the ‘Loonie’ today.

Jean-Francois Perrault, an economist at Scotiabank, was also upbeat about the Canadian economy, saying:

‘Recent Canadian developments stand in sharp contrast to events in much of the rest of the world. Whereas U.S. growth is clearly decelerating, Canadian growth is on an upswing, with recent indicators pointing to a very sharp rebound from a somewhat sluggish start to the year.’

Many ‘Loonie’ traders, however, are bracing for a busy data week which could make or break the Canadian economy’s recent upbeat momentum.

GBP/CAD Exchange Rate Falls as UK House Prices Fall for First Time This Year


The Pound fell against many of its competitors this morning following the printing of the Rightmove house price index figures for July.

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Month-on-month figures fell from 0.3% to -0.2%, while year on years fell from 0.0% to -0.2%.

Miles Shipside, a Director at Rightmove, said:

‘The national market faces a range of challenges, with overall average asking prices barely changed from last year, and activity levels slightly lower. Some buyers are hesitant due to the long-drawn-out uncertainty of Brexit, and there is also a slight tightening of mortgage availability and stretched buyer affordability, especially when it comes to raising a deposit.’

Brexit concerns are also continuing to hold back the Pound today.

This came following comments from the International Trade Secretary, Liam Fox, who said that a post-Brexit trade arrangement with the United States may be more difficult – and take much longer – than has been anticipated by Boris Johnson, the current Tory leadership favourite.

The Tory leadership race is also in focus today with Jeremy Hunt and Boris Johnson due to go head to head.

Any indications of support for a no-deal Brexit coming from either potential Prime Minister would prove Pound-negative.

GBP/CAD Outlook: BoE Governor’s Speech in Focus


Pound investors will be looking ahead to tomorrow’s publication of the UK average earnings figures for May.

If these confirm their positive consensus, we could see the Pound begin to rise.

Tomorrow will also see the publication of the UK claimant count change figures for June.

Canadian Dollar traders, meanwhile, will be looking ahead to Wednesday’s Canadian inflation data for June.

As these are expected to increase, we could see the ‘Loonie’ hold onto its gains.

The GBP/CAD exchange rate will, however, remain sensitive to any dovish comments from Mark Carney, the Governor of the Bank of England (BoE), tomorrow.

If Mr Carney confirms expectations of a struggling UK economy the Pound is likely to remain subdued against many of its competitors.

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