August 18, 2014 - Written by Toni Johnson
STORY LINK Pound to Canadian Dollar Exchange Rate Today - GBP/CAD Hindered by Potential Carney/Osborne Deal
The Pound Sterling to Canadian Dollar exchange rate (GBP/CAD) traded in a stronger position on Monday, making gains against other majors following Sterling’s flop last week in the currency market.
Conversely the Cdn currency had seen popularity since the re-publication of employment data proved highly favourable on Friday.
The latest forex rates are provided for your reference below (updated 20/08/2014):
- The Canadian Dollar to Australian Dollar exchange rate is trading down -0.05% at 0.98268 CAD/AUD.
- The Canadian Dollar to Euro exchange rate is trading up +0.14% at 0.68716 CAD/EUR.
- The Canadian Dollar to Pound Sterling exchange rate is trading down -0.26% at 0.54856 CAD/GBP.
- The Canadian Dollar to New Zealand Dollar exchange rate is trading up +0.2% at 1.08764 CAD/NZD.
- The Canadian Dollar to US Dollar exchange rate is trading down -0.16% at 0.91265 CAD/USD.
Have the UK Exchange Rates Remained Low for Political Gain?
The Pound is shrouded by speculation on Monday, that Governor for the Bank of England, Mark Carney, could have made deals with George Osborne to keep interest rates at the current low until after the General Election next year. Despite treasury sources denying any involvement, rumours are rife that a deal would be beneficial for Osborne with a lack of interest rate hikes allowing the UK economy to appear stronger. A treasury source defended Carney stating: ‘The idea that there is some sort of deal between the chancellor and the Governor is utterly false.’
MP Mark Field however has had alternate views, instead suggesting that the relationship between Carney and Osborne has been ongoing for some time. Field stated: ‘From the moment Mark Carney became Governor in July 2013, it was pretty clear forward guidance was an indication rates would not rise this side of the election—for all the talk of Bank of England independence, there was a clear bargain between him and George Osborne.’
However Sunday saw Carney make highly influential remarks that saw the Pound rise. Sterling saw popularity as Carney stated that interest rate hikes would not be dependent on wage increases as some economists may have thought. The Pound flopped spectacularly last week, with the Inflation Report confirming another vote against an interest rate hike by board members. Field continued: ‘Every time he [Carney] opens his mouth, there are jitters in the markets, the impact on the Pound and concerns that rates go up, which damages confidence when recovery is fragile.’
Canadian Dollar Expects another Influential Day on Friday
This Friday will see the Canadian Dollar experience some fluctuation after the Bank of Canada releases the Consumer Price Index, alongside Retail Sales figures which, if favourable, could help push the ‘Loonie’ up higher in the currency market. Last Friday saw the republishing of Canadian employment figures which have jumped from the originally published 200 jobs, to an actual 42,000. Statistics Canada who conduct the survey noted the initial error, and stated that they would be republishing the figures at the end of last week.
A Statistics Canada representative Wayne Smith stated: ‘This was an isolated incident. I am fully confident in the integrity of the Labour Force Survey program.’ The accuracy of the figures have been blamed on a ‘major redesign’ of the system that records and calculates data. Statistics Canada stated: ‘During the system change that was implemented with the July release, one program was not updated. This was a human error that resulted in the incorrect processing of some data for July 2014 only. Certain respondents that should have been classified as employed were counted as not in the labour force, resulting in an over-estimation of job losses in full-time employment.’
Canadian Dollar to Pound Exchange Rate Outlook
For now the Canadian Dollar appears to be awaiting any currency market movements for fluctuation in its exchange rates. However, the Pound is likely to be subject to much volatility this week with the Bank of England’s meeting minutes released on Wednesday and Consumer Price and Retail Price Index figures due for publication on Tuesday. Retail Sales, Public Sector Net Borrowing and Public Finance figures are all expected on Thursday which could prove a boost for the currency market if favourable.
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TAGS: Pound Canadian Dollar Forecasts