After Friday’s dramatic Pound losses, the GBP CAD exchange rate fell further on Monday.
While Sterling remained close to multi-year lows against most of its rivals, the Canadian Dollar was able to advance thanks to positive domestic employment data and positive oil price news.
The GBP CAD exchange rate lost around 6 cents over the course of last week.
Pound Sterling News: More Turbulence Ahead for GBP?
Pound demand remains limited as investors digest the impact of Friday’s impressive losses and consider the potential ramifications of a ‘Hard Brexit’.
UK data was also lacking at the start of the week, giving the Pound little reason to rally.
‘Brexit’ fears are one of the factors being blamed for the current high levels of GBP volatility, while Confederation of British Industry (CBI) head Carolyn Fairbairn stated that;
‘It’s very clear from conversations we are having that the world is watching. International investors are watching. Companies here are watching. And they are reading a lot into the signals of this government about how committed they are to creating a strong economy [after ‘Brexit]’.
Commodity Price Gains Trigger Canadian Dollar Rally
After being supported on Friday by positive domestic employment data, the ‘Loonie’ extended gains on Friday thanks – in part – to the latest shifts in the costs of nationally important commodities, such as gold and crude oil.
In the former case, having dived in value at the start of October, the cost of gold per 100 ounces has since risen to $1264. Elsewhere, in spite of declining recently due to recurrent OPEC doubts, the cost of crude oil remains close to a monthly high at $49.61 per barrel.
GBP/CAD Exchange Rate Forecast
This week, Pound Sterling/Canadian Dollar exchange rate movement may occur as a result of Canadian housing starts and new housing price index data on Tuesday and Thursday, as well as Friday’s pair of UK and Canadian ecostats.
Canadian housing starts for September are predicted to show a decline from 182.7k to 179k.
The UK’s opening data on Friday will concern annual construction output in August, which is forecast to show a shift from -1.5% to -1.1%.
From Canada, Friday afternoon will bring low-impact new motor vehicle sales, which are set to change from 176k in July to 158k.