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GBP/CAD Outlook: Pound Canadian Dollar Exchange Rate Edges Higher on UK Vaccine Rollout

April 15, 2021 - Written by John Cameron

The Pound Canadian Dollar (GBP/CAD) exchange rate has rebounded this afternoon and sees the Pound heading higher despite positive employment change data from Canada.

At the time of writing the GBP/CAD exchange rate is currently trading at around CA$1.7243.

Pound (GBP) Exchange Rate Rebounds on Success of UK Vaccine Rollout

The Pound has rebounded against the Canadian Dollar this afternoon though coronavirus concerns and a general weakness surrounding the currency have limited any significant gains.

Whilst the economic outlook for the Pound remains positive, a lack of any fresh developments from the UK regarding the coronavirus situation has kept Sterling unappealing.

Though today it has been reported that those over the age of 30 will be able to book in for their coronavirus vaccine by the end of May, signifying the UK’s vaccine rollout remains on schedule.

The Joint Committee on Vaccination and Immunisation (JCVI) has revealed the rollout will continue in five-year age bands after it was expanded to the under 50s.

The UK’s vaccination rollout has so far been a success, with Health Secretary Matt Hancock telling MP’s earlier in the week that ‘it’s a remarkable achievement.’

Canadian Dollar (CAD) Mixed as US Dollar (USD) Rebounds

The Canadian Dollar has spent much of the day up against the Pound but found itself falling this afternoon as the US Dollar rebounded and pushed CAD down.

A stronger US Dollar (USD) has caused the Canadian Dollar to slip, however its losses have been limited by surging oil prices this week.

WTI crude is currently hovering around $63.21 a barrel, with the demand for oil in Canada returning as Canada Energy Regulator’s Christie said:

‘The million-dollar question now in terms of what’s going to happen with demand is really what’s going to happen with the pandemic.’

Canadian manufacturing sales also fell 1.6% in March, missing forecasts of 1%.

GBP to CAD Near-Term Forecast: Coronavirus Developments in Focus

For Canadian Dollar traders, the alarming rise in coronavirus cases in Canada could weigh on CAD exchange rates in the coming sessions as a third wave threatens to hit Canada's economy.

Tomorrow’s housing data and wholesale sales could cause some movement in the ‘Loonie’ heading into the weekend, although the focus for CAD investors may be the country's coronavirus situation.

For Pound investors, in absence of any data before the weekend the exchange rates will instead be driven by any further coronavirus developments.

Investors will hope that the cluster of South African variant cases can be contained in and around London as to not delay the England’s lockdown easing.

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TAGS: Pound Canadian Dollar Forecasts

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