GBP/CAD Exchange Rate Muted as Markets Unfazed by UK Mortgage data
UPDATE: The Pound Canadian Dollar (GBP/CAD) exchange rate appears rangebound this morning as the latest UK mortgage approval figures failed to light a fire under Sterling.
This is despite the latest reading from UK Finance reporting that the number of home loans approved this month unexpectedly rose, with GBP investors appearing largely unfazed by the release.
Meanwhile the CAD exchange rate looks to edge higher this morning, thanks to a continued uptick in crude oil prices.
GBP/CAD Exchange Rate Muted as Crude Prices Surge
UPDATE: The Pound Sterling Canadian Dollar (GBP/CAD) exchange rate is trading in a narrow range this afternoon, following a strong uptick in oil prices.
WTI crude has risen as much a 1.3% in trade today as markets remain concerned that a spat between the US and Iran could disrupt oil supplies, thus buoying the CAD exchange rate.
This helped the ‘Loonie’ to offset the broad-based rally seen in Sterling this afternoon after Theresa May vowed to ‘take control’ of Brexit talks.
GBP/CAD Exchange Rate Tumbles as August Rate Hike Now in Question
The Pound Sterling Canadian Dollar (GBP/CAD) exchange rate nosedived last week, striking a new six-week low as Sterling was buffeted by a run of soft UK data releases and an undercurrent of political uncertainty.
The main catalyst for Sterling’s losses however was undoubtedly the slew of dreadful UK data, which saw the UK’s latest wage growth, inflation and retail sales figures all print below expectations.
These losses were accentuated by being the last major data releases before the Bank of England’s (BoE) next policy meeting, dampening expectations that the bank would be willing to commit to a rate hike in August.
Nevertheless, the GBP/CAD exchange rate found some respite in the second half of the week, thanks to the release of some weaker-than-expected employment growth figures from Canada, which saw the Canadian Dollar (CAD) fall back on Thursday.
While the ‘Loonie’ looked to rebound on Friday in the wake of some upbeat domestic inflation and retail sales figures, it proved to be a ‘dead cat bounce’ with CAD exchange rates walking back its gains as markets looked to dump commodity currencies.
Pound Sterling (GBP) Exchange Rate Flat as Broadbent Remains Tight Lipped
The Pound (GBP) is muted this morning as markets remain uncertain whether the BoE will be willing to raise interest rates next month.
GBP investors had hoped to glean some information from the BoE’s Deputy Governor, Ben Broadbent as he spoke to London’s Society of Professional Economists on Monday.
However traders were left none-the-wiser as Broadbent remained coy on his outlook for next week’s policy meeting, offering no hints on which way he was likely to vote in the BoE’s August policy meeting.
Canadian Dollar (CAD) Exchange Rate under Pressure from Lower Oil
At the same time the Canadian Dollar (CAD) is showing no signs of life this morning as it is pressured by lower oil prices and lingering NAFTA concerns.
With oil accounting for roughly 15% of Canada’s total exports, the 0.5% fall in WTI crude prices on Monday led to markets shunning the ‘Loonie’ at the start of the week’s session.
Further denting the CAD exchange rate are concerns that Canada may be getting the short straw in NAFTA negotiations, with Trump suggesting the US may hammer out separate deals between Mexico and Canada.
GBP/CAD Exchange Rate Forecast: Will CBI Retail Data Drag on the Pound?
Looking ahead, the Pound Sterling Canadian Dollar (GBP/CAD) exchange rate may tick lower on Wednesday following the publication of the Confederation of British Industry’s (CBI) latest Distributive Trends index.
Economists forecast that the index will have slumped from 32 to 15 this month, indicating retail activity has slowed in July and likely weakening the Pound exchange rate.
Meanwhile the absence of any notable data releases could leave the Canada Dollar struggling to find momentum this week.
This could leave CAD exposed to losses should oil prices continue to edge lower throughout the session.