GBP/CAD Exchange Rate Forewcast: Crude Oil Sends British Pound to Canadian Dollar Upward

Modified: Wednesday, 19 November 2014 20:52 BST - Written by Toni Johnson

STORY LINK GBP/CAD Exchange Rate Forewcast: Crude Oil Sends British Pound to Canadian Dollar Upward

Those looking to send money to canada from the UK have seen better currency transfer rates this week. The Pound Sterling (GBP/CAD) advanced against the weakened Canadian Dollar as concerns over the health of the global economy increased as news broke that Japan has re-entered recession and as a number of financial intuitions warn that the world could heading towards a new slowdown.

The Canadian Dollar exchange rate declined sharply against the majority of its most traded peers after data showed that Japan fell back into recession.

The Japanese economy emerged from its last recession in 2012 and the hopes that Prime Minister Shinzo Abes radical plan to end stagnation has failed as consumer spending falters.

The news spooked investors causing them to favour the safer havens of the US Dollar and Yen over the riskier commodity based assets.

The Pound to Canadian Dollar conversion rate is -0.04 pct lower at 1.76786 GBP/CAD.
The Euro to Canadian Dollar exchange rate converts -0.44 per cent lower at 1 EUR is 1.40742 CAD.
The US Dollar to Canadian Dollar exchange rate converts +0.11 per cent higher at 1 USD is 1.13025 CAD.

Canadian Dollar Exchange Rate Falls on Crude Oil Prices

Also weighing heavily upon the Canadian currency was news that crude oil tumbled below $75 per barrel for the first time in four years as global oversupply continues to hammer prices lower.


‘The market is under incredible pressure and it will stay that way until OPEC takes decisive action,’ Rob Haworth, a senior investment strategist in Seattle at U.S. Bank Wealth Management said in a phone interview with Bloomberg on Nov. 13. ‘There has to be something that changes the story, which is that there’s too much supply.’

A major oil pipeline deal is also causing uncertainty as the US House of Representatives passed legislation in favour of building the proposed Keystone XL pipeline last week. Economists are unsure whether President Barrack Obama will veto the bill and it is uncertain that the House of Representatives will be able to muster enough support to override a veto if it does occur.

Also weighing on the Canadian Dollar was a report released by Statistics Canada which showed that foreign investment increased by a seasonally adjusted C$4.37 billion in September, compared to expectations for purchases of C$11.32 billion.

Pound Exchange Rate Under Pressure

Sterling meanwhile was under pressure after Bank of England Governor Mark Carney and Chief Economist Andy Haldane said that they are concerned that inflation in the country is slowing.

The US Dollar managed to hold onto gains against the ‘Loonie’ despite economic data coming in below forecasts.
Industrial production in the world’s largest economy fell in October, as a gain for manufacturers was not enough to offset a decline in the nation’s utility and mining sectors. Overall production fell by a seasonally adjusted level of 0.1%.

The separate Federal Reserve Bank of New York showed that its manufacturing index increased to a figure of 10.2 this month from a reading of 6.2 in October. Analysts had expected the index to rise to 11.1 in November.

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