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GBP/CAD Forecast: Pound to Canadian Dollar Exchange Rate Mixed as Oil Prices Rise

July 27, 2021 - Written by John Cameron

The Pound to Canadian Dollar exchange rate (GBP/CAD) has been mixed for much of the day as the Canadian Dollar finds fresh impetus to head higher on the back of rising oil prices.

The GBP/CAD pairing are currently trending at around CA$1.7332 as the Pound struggles to hold onto any meaningful gains.

Pound Sterling (GBP) Exchange Rate Mixed on UK CBI Distributive Trades

The Pound has been mixed against the Canadian Dollar for much of the day as coronavirus concerns limit any meaningful gains for Sterling.

Despite the latest CBI distributive trades data coming in better-than-expected, ongoing worries about the coronavirus in the UK limited the Pound’s gains today.

Ben Jones, principal economist at the CBI, commented on the latest figures:

‘Consumer demand continues to support the UK’s economic recovery. Retail sales have been at or above seasonal norms for the last four months now, although this picture is not universal, with the clothing and footwear stores in particular yet to see demand recover to usual levels.’

More so, government ministers have been warned that health services across the UK remain under immense pressure despite a fall in daily coronavirus cases.

Chris Hopson, CEO of NHS providers commented:

‘It is the task of NHS leaders to juggle these competing priorities and provide the best possible care to the greatest number of people.’

‘But they need maximum support from government. And they’re worried that, as the NHS budget is set for the second half of the year, that support won’t arrive. The government is stressing the need to restore public finances. But the NHS can’t meet the pressures it faces without the right funding.’

Canadian Dollar (CAD) Supported by Rise in Oil Prices

The Canadian Dollar has been supported by a resurgence in oil prices for much of the day, as the commodity-correlated currency reaps the rise in oil.

Canada is also enjoying a swifter vaccination rollout, now overtaking the US with over almost 50% of Canadian’s now fully vaccinated against coronavirus.

Canada’s border will reopen to fully vaccinated American’s from the 9th August as the country prepares to welcome back tourists.

However, a risk-off mood has limited any major gains for the ‘Loonie’ today as the global prevalence of the delta variant of coronavirus worries investors.

GBP/CAD Exchange Rate Forecast: Canadian Inflation in Focus

Tomorrow will see the release of the latest Canadian inflation figures for June which are forecast to have softened to 0.4% month-on-month.

The fall in consumer prices could cause the Canadian Dollar to stumble throughout tomorrow’s session.

Pound traders will be keeping an eye on any domestic coronavirus developments in the coming days on the absence of economic data from the UK.

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TAGS: Pound Canadian Dollar Forecasts

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