Canadian Dollar Exchange Rate Outlook - CAD to Pound, Euro and US Dollar News and Forecasts

October 6, 2014 - Written by Frank Davies

STORY LINK Canadian Dollar Exchange Rate Outlook - CAD to Pound, Euro and US Dollar News and Forecasts

The latest Canadian Dollar analysis and CAD exchange rate news in relation to the Pound, Euro and US Dollar.

The Pound Sterling (GBP) was softer against several major peers including the Canadian Dollar (CAD) on Monday as it remained under pressure from last week’s data releases, which showed that the UK economy is showing signs of slowing.

Both Manufacturing and Services Purchasing Managers Index reports showed a slowdown.

The latest CAD rates are:

The Pound to Canadian Dollar exchange rate is trading down -0.48 per cent at 1.78875 GBP/CAD.
The Euro to Canadian Dollar exchange rate is down -0.24 pct at 1.40557 EUR/CAD.
The US Dollar to Canadian Dollar exchange rate is -0.88% pct lower at 1.11620 USD/CAD.

The services PMI fell to its lowest level in three months to a reading of 58.7, a drop from the 60.5 figure recorded in August. The manufacturing sector meanwhile, slowed to its lowest level in 17 months in September.

Comments made by Bank of England Deputy Governor Ben Broadbent also continued to weigh as did a speech by Business Secretary Vince Cable.

The Canadian Dollar to Euro exchange rate trended 0.24 per cent highe today

Last week saw the Pound weaken after Broadbent said that he doubted that the UK economy was strong enough to warrant an increase in interest rates.

On Sunday, Mr Cable said that he believed that the Pound was overvalued.

Cable said over the weekend that; ‘UK export growth has stalled, partly because its half of exports goes to the EU and the crisis in the Eurozone has acted as a significant handicap.

We are also getting back into exchange rate issues. Arguably, the Pound is overvalued by 10%-15% on a trade-weighted basis.

Any company having to compete externally on price is struggling for that reason. This feeds back into monetary policy and Bank of England interest rates. It's a significant problem which we can't directly address.’

It’s not all negativity for the Pound however as reports published early in Mondays session showed that New car sales soared to a 10-year high last month and the UK’s finance sector recorded its strongest growth since 2007.

A survey published by the Confederation of British Industry and financial services firm PricewaterhouseCoopers, showed that 60% of companies reported an increase in business activity. The number of new cars sold in the UK increased by 5.6% year on year last month, the 31st consecutive monthly increase.

The Canadian Dollar exchange rate (CAD) meanwhile found support from data, which showed that Business Confidence in the North American nation increased to a reading of 58.6 in September a sharp rise from the 50.9 number seen in August. The figure also beat economist forecasts for a figure of 53.0.

Tuesday sees the release of the latest Canadian Building Permits data and the latest UK Manufacturing and Industrial Production data.

The UK data will have to come in positively if the Pound is to find support and regain lost ground.

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