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Pound Sterling Canadian Dollar (GBP/CAD) Exchange Rate Slides following Strong Canadian Job Market Figures

March 8, 2019 - Written by John Cameron

Pound Canadian Dollar (GBP/CAD) Exchange Rate Falls as Canadian Job Creation Surges

The Pound Sterling Canadian Dollar (GBP/CAD) exchange rate has fallen and the pairing is currently trading at an inter-bank rate of CA$1.7549.

This afternoon, data showed that Canadian unemployment remained steady at 5.8%, and net change in employment rose higher than was forecast.

Canada saw a surge of 55,900 new jobs created in February, with this being fuelled by a rise of 67,400 full-time positions, although 11,600 part-time jobs fell.

The data release gave Canada its strongest two-month stretch of job creation since spring 2012, and the best two-month start to a year since 1981.

Further buoying the ‘Loonie’ was the rise in average hourly earnings, as February’s wages rose by 2.25% compared to the previous year.

This was the highest annual rise since August 2018.

Pound (GBP) Slides as PM Warns UK ‘May Never Leave’ EU

The Pound Canadian Dollar (GBP/CAD) exchange rate continued to slide as reports suggested Theresa May was to attempt one last time to get a better deal from the European Union.

In her last-ditch attempt, the Prime Minister attempted to plead with the EU leaders for further concessions as talks in Brussels have reportedly stalled.

During her speech in Grimsby, the PM acknowledged that the UK may not leave the EU for many months, saying ‘we may never leave.’

May also said that MPs face ‘a crucial choice; whether to back the Brexit deal or to reject it’, and continued by saying:

‘Back it and the UK will leave the European Union. Reject it and no one knows what will happen.’

The Prime Minister appealed to EU leaders by saying it would be ‘in both of our interests’ and that the deal ‘needs one more push’ to address MPs’ concerns.

‘If MPs reject the deal nothing is certain. It would be at a moment of crisis.’

Pound Canadian Dollar Outlook: Will the GBP/CAD Exchange Rate Slip on a Dovish Haskel?

As there is an absence of further economic data releases, it is likely that one of the main catalysts for the Pound Canadian Dollar (GBP/CAD) exchange rate is Brexit.

Looking ahead to next week, the Pound could slip on Monday following a speech from the Bank of England’s (BoE) Jonathan Haskel.

If Haskel continues the BoE’s dovish tone, the Pound could slide against the Canadian Dollar.

On Tuesday, the Pound is likely to fluctuate ahead of Parliament’s second ‘meaningful vote’.

If Theresa May’s withdrawal agreement is voted against, the Pound Canadian Dollar (GBP/CAD) could fall.

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