British Pound to Canadian Dollar Exchange Rate Today: GBP/CAD Conversion Firms on Housing Starts Data

November 11, 2014 - Written by James Fuller

STORY LINK British Pound to Canadian Dollar Exchange Rate Today: GBP/CAD Conversion Firms on Housing Starts Data

The Pound Sterling inched higher against the Canadian Dollar (GBP/CAD) exchange rate but further movement was likely to be muted due to a lack of market moving economic data releases.

Against the US Dollar, the Canadian Dollar advanced to its best level in a week as last week’s softer than forecast US Nonfarm payrolls data weighed on the USD.

Here's the most recent currency rates today:

The Pound to Canadian Dollar exchange rate converts +0.15 per cent higher at 1 GBP is 1.80506 CAD.
The Euro to Canadian Dollar exchange rate is +0.1 pct higher with a conversion rate of 1 EUR equals 1.41456 CAD.
The US Dollar to Canadian Dollar conversion rate is +0.03 pct higher at 1.13750 USD/CAD.

Canadian Dollar to Pound Exchange Rate Advances

The Canadian Dollar initially advanced against the Pound after it found support from the publication of positive economic data out of China.

The report released overnight showed that China’s trade surplus increased more than market expectations, easing some of the concerns over a slowdown in the world’s second largest economy.

China’s trade surplus widened in October to $45.4 billion from the $30.9 billion recorded in September and was higher than the $42.3 billion surplus forecast by economists.

A separate report also showed that China’ consumer price index increased by 1.6% from the previous year.

As the session progressed, the Canadian Dollar then received some support from an improvement in oil prices as brent crude oil increased in value to a weekly high. As Canada is one of the world’s leading oil exporters, a rise in the commodities price is a positive for the ‘Loonie’.

Canadian Dollar to US Dollar Exchange Rate Climbs

The CAD/GBP then softened after domestic data released by Canada Mortgage and Housing Corp showed that housing starts fell to an annualised level of 183,604 units in October, down from the 197, 355 recorded in September. The figure was the lowest recorded in seven months. Economists had been expecting an increase of around 200,000.

“The decrease in the trend reflects a decline, in October, of starts of multi-unit dwellings, including condominiums,” said Bob Dugan, CMHC’s Chief Economist.

Against the US Dollar, the Canadian currency advanced as the ‘Greenback’ was softened by last week’s softer than forecast Nonfarm payrolls data.

The Labour Department reported last Friday that the U.S. economy added 214,000 jobs in October, missing expectations for jobs growth of 231,000. September’s figure was revised up to 256,000 from a previously reported 248,000 and Augusts’ figure was revised up to 203,000 from 180,000 pointing to underlying strength in the labour market. The U.S. unemployment rate ticked down to a fresh six-year low of 5.8% from 5.9% in September.

The softer than expected data caused investors to embark on a bout of profit taking which in turn softened the US Dollar.

Investors will now turn their attention to Friday’s Canadian Manufacturing data.

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