GBP CAD Exchange Rate Up Following Weak Canadian Housing Data, Euro Loses Ground Over Berlusconi Fears

Published: Monday, 10 December 2012 18:00 BST - Written by Frank Davies

STORY LINK GBP CAD Exchange Rate Up Following Weak Canadian Housing Data, Euro Loses Ground Over Berlusconi Fears

There was more bad news for the euro earlier today when Italian Prime Minister Mario Monti announced that he will be quitting his post ahead of schedule. Monti is an affirmed technocrat and was seen as a man whom Brussels could work with in an attempt to control and reduce the Mediterranean nation’s huge governmental debt.

The news from Italy was particularly worrying given its timing – it was only yesterday that erstwhile Italian Prime Minister and well known anti-technocrat Silvio Berlusconi, announced that he would be re-taking the reins at his People of Freedom (PDL) party. Berlusconi stated that the PDL’s failure to find a leader ‘as well known’ as him had precipitated the decision and that he aimed to run for his country’s top job once again in 2013.

Market participants have reacted to the development by selling off Italian shares by the shed-load. The news has also served to maintain the bout of selling pressure on the euro which began during the second half of last week. This has sent the GBP EUR exchange rate up to its highest level since 22nd November at 1.2445 earlier.

Elsewhere, the Pound has made a positive move against the Canadian Dollar during this afternoon’s session, following the release of a disappointing set of Canadian Housing Start data for November. The leading indicator of activity in the housing sector printed at 196,100 against expectations of a 202,000 showing, helping the GBP CAD exchange rate recover to 1.5906 following recent downside pressure on the pair.

Looking ahead, tonight’s New Zealand Card Spending data could prove to be market-moving if it shows at significantly above or below September’s monthly reading of 0.4%. A positive release could help send the GBP NZD exchange rate back below the 1.9000 level once more.

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TAGS: Canadian Dollar Forecasts Currency Predictions Euro Forecasts Euro Forecasts