GBP/CAD Forecast: Pound to Canadian Dollar Exchange Rate Heads Higher on UK Retail Sales Figures

May 21, 2021 - Written by John Cameron

STORY LINK GBP/CAD Forecast: Pound to Canadian Dollar Exchange Rate Heads Higher on UK Retail Sales Figures

The Pound to Canadian Dollar exchange rate (GBP/CAD) is heading higher today following the release of the latest retail sales from the UK.

The GBP/CAD pairing are currently trending at around CA$1.7149 as Canadian Dollar investors await the latest retail sales from Canada later today.

Pound Sterling (GBP) Exchange Rate Heads Higher on UK Retail Sales Figures

The Pound has been heading higher against the Canadian Dollar this morning following the release of the latest UK retail sales figures.

Retail sales surged to 9.2% during April as much of the UK high street reopened from coronavirus restrictions.

The Office for National Statistics explained the rise in retail sales saying:

‘The value and volume of sales were both up 9.2% when compared with March 2021 reflecting the impact of the re-opening of all non-essential retail stores in April. This signalled continued recovery in the retail sector following the growth in March (5.1%) and February (1.8%).’

Sterling finds further support in flash PMI data from the UK for May which has shown that the IHS Markit UK Composite Output Index rose to 62.0 in May, from 60.7 in April, the fastest rate of growth in more than 20 years.

Chris Williamson, Chief Business Economist at IHS Markit, commented on the index saying:

‘The output and order book growth seen in May, and record level of business optimism, are consistent with GDP rising sharply in the second quarter and for strong momentum to be sustained through the rest of the year, albeit with the current quarter likely representing a peak in the growth rate.’

Canadian Dollar (CAD) Exchange Rate Awaits Canadian Retail Sales

The Canadian Dollar has weakened today as markets await the latest retail sales figures from Canada for March.

Canada retail sales are forecast to have risen 9% annually, which would be the highest level since before the coronavirus pandemic began in March 2020.

A broad weakness in the US Dollar has seen the ‘Loonie’ limit its losses this morning, as risk-on trade causes the US Dollar to fall further.

GBP/CAD Exchange Rate Forecast: Coronavirus Developments in Focus

Over the weekend, Pound investors will be keeping an eye of any further coronavirus developments as a surge in Indian variant cases of the virus could cause the UK’s roadmap out of lockdown to be delayed.

Canadian Dollar traders will keep an eye of the global market mood in the coming days, a further pullback in the US Dollar could see the ‘Loonie’ head higher.

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TAGS: Pound Canadian Dollar Forecasts