GBP/CAD Forecast: Pound to Canadian Dollar Exchange Rate Steady as Markets Await Canadian Employment Data

May 7, 2021 - Written by John Cameron

STORY LINK GBP/CAD Forecast: Pound to Canadian Dollar Exchange Rate Steady as Markets Await Canadian Employment Data

The Pound to Canadian Dollar (GBP/CAD) is steady today as markets await the latest employment data from Canada later this afternoon.

The GBP/CAD pairing are currently trending at around CA$1.6948 as the UK government is set to reveal its green-light countries for travel over the summer.

Pound Sterling (GBP) Exchange Rate Steady on back of Coronavirus Recovery

The Pound has been steady against the Canadian Dollar today as coronavirus recovery hopes across the UK continue to bolster the currency.

It is expected today that the UK government will announce the list of countries that holiday-makers can visit this summer without needing to quarantine for Covid-19 when they return to the UK.

British Airways owner IAG’s chief executive Luis Gallego made it clear he wanted the government to be more lenient with green-light countries, saying:

‘We believe that the government needs to be a bit ambitious in getting global travel back on track and bring the benefits of all the efforts that the government and people have done with the vaccination rollout.’

‘I think they need to recognise that people who are vaccinated or have been tested can travel without restrictions.’

It comes as the UK’s vaccine rollout remains on course to be delivered by July and the latest stage of lockdown easing is just over a week away causing investors to remain optimistic over the UK’s swift recovery from coronavirus.

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Canadian Dollar (CAD) Exchange Rate Awaits Canadian Employment

The Canadian Dollar has been muted today as markets await the latest employment data from Canada for April, which could see the currency suffer.

Canada is forecast to have lost 210,000 jobs in April and the unemployment rate is expected to have risen to 7.8% as the country deals with a third wave of coronavirus.

Canada’s vaccine rollout has been relatively slow, caused by delivery delays and parts of the country have had to re-enter tougher lockdowns to help combat the virus.

It comes as Canada is the first country to announce the approval of the Pfizer vaccine for children between the ages of 12-15.

GBP/CAD Exchange Rate Forecast: UK GDP Data in Focus

Heading into next week, Pound investors will be looking towards the middle of the week for the latest preliminary GDP data for Q1 from the UK.

GDP is forecast to have fallen -1.4% as the country dealt with a third national lockdown, however as this has already been accounted for it may not weaken the Pound as much as expected.

A quieter week for Canada will see the Canadian Dollar continue to be driven by any further coronavirus developments next week, with investors hoping Canada can ramp up its vaccination programme.

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TAGS: Pound Canadian Dollar Forecasts