UK inflation data left the Pound fluctuating on Tuesday, but the currency was able to hold its own against the Canadian Dollar as falling oil prices kept CAD pressured.
Over the past 7 days the Pound Canadian Dollar exchange rate has been moving between highs of 1.74 and lows of 1.71.
UK Economic News: Inflation Stalls GBP CAD Rally
The latest UK news to impact the GBP CAD currency pair was the nation’s CPI report for August.
The annual figure reprinted at 0.6% instead of 0.7% while the monthly gain of 0.3% was less than the 0.4% increase anticipated.
While rising inflation can sometimes be considered good news for a nation’s economy, the uptick in UK import prices has knocked the UK’s economic outlook. Additionally, the cost of transport in the UK was shown to have risen on the year in August when it previously fell considerably during 2015.
Canadian Dollar Update: ‘Loonie’ Slides on Commodities News
The Canadian Dollar has failed to make any major gains over the course of Tuesday, mainly on account of the latest predictions for the price of crude oil.
The commodity’s outlook has generally been extremely negative of late, with the International Energy Agency predicting that the supply of crude oil will outpace demand until mid-2017 at the earliest.
This factor, plus the news that Royal Dutch Shell recently began drilling at the world’s largest underwater oil and gas field in the Gulf of Mexico,
have seen the price of crude oil on the WTI index plunge from around $47.50 per barrel to close to $45 over the last five days.
GBP/CAD Exchange Rate Forecast
For the rest of the present week, Pound Sterling/Canadian Dollar exchange rate movement may occur as a result of tomorrow’s UK claims, unemployment and earnings figures, as well as Thursday’s Bank of England (BoE) interest rate decision.
Canadian Dollar movement may also be caused by Wednesday’s Bank of Canada (BOC) speech from Carolyn Wilkins, as well as Friday’s Canadian manufacturing sales figure for July.
UK claims and earnings and expected to fall, while unemployment has a damaging rise forecast from 4.9% to 5%.
For the crucial BoE rate decision, no change is expected from the current 0.25% figure.
Concerning UK news could give the Canadian Dollar the chance to recover recent losses.