Pound to Canadian Dollar (GBP/CAD) & Pound to South African Rand (GBP/ZAR) Exchange Rates Slide

Modified: Friday, 11 October 2013 16:48 BST - Written by Ben Hughes

STORY LINK Pound to Canadian Dollar (GBP/CAD) & Pound to South African Rand (GBP/ZAR) Exchange Rates Slide

The Canadian Dollar has been well supported today thanks to some encouraging Canadian employment numbers. Meanwhile, the Pound South African Rand exchange rate (GBP/ZAR) has tumbled as appetite for risk returns to the global markets in anticipation of a debt deal in the States.

The Pound Canadian Dollar exchange rate (GBP/CAD) is currently trading down by 0.26% at 1.6580 GBP/CAD. The Canadian Dollar Pound exchange rate is currently trading at 0.6031 CAD/GBP.

Strong Canadian jobs market data, released earlier this afternoon, has helped the Canadian tender strengthen against Sterling, sending the GBP CAD exchange rate down by around a quarter of a percentage point to 1.6590. The Canadian Net Change in Employment figure for last month marginally beat analysts’ expectations to show at 11,900, but it was the Overall Unemployment Rate number which stoked support for the Loonie on the day. The headline number revealed that Canadian unemployment unexpectedly dropped from 7.1% in August to 6.9% in September. The GBP CAD exchange rate now appears primed for a sharp move lower as soon as US lawmakers announce an agreement on extending their nation’s debt ceiling. Such an outcome is forecast for next week.

Meanwhile, the Pound South African Rand exchange rate (GBP/ZAR) has tumbled to as low as 15.7240 on the day. The move has been largely driven by a relief rally for the South African tender following developments in the States last night. With Republicans having offered an olive branch to their Democrat counterparts in the form of a proposed six week extension to the US debt ceiling, a deal now looks likely sooner rather than later. Expect global stock markets and the South African unit to register strong gains when such a development takes place.

Looking ahead, next Tuesday’s UK Consumer Price Index inflation figure is forecast to be market-moving. With a drop in the headline annualised figure to 2.6% anticipated, the release promises to be market-moving. Anything outside this figure would trigger renewed price action for the GBP EUR and GBP USD exchange rates.

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TAGS: Canadian Dollar Forecasts Currency Predictions Pound Canad Forecasts