Pound Canadian Dollar (GBP/CAD) Exchange Rate Muted as Canadian Manufacturing Shipments Fall to Four-Month Low
Update: The Pound Sterling Canadian Dollar (GBP/CAD) exchange rate was left flat and the pairing is currently trading at an inter-bank rate of CA$1.6803.
On Tuesday afternoon data revealed that Canadian manufacturing shipments slumped further than forecast in April.
Despite an expected rise of 0.4%, shipments contracted by -0.6%, the largest fall in four months.
This came after March’s 16-month high of 2.1% which likely dampened sentiment in the ‘Loonie’.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Muted on No-Deal Brexit Fears
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was left flat and the pairing is currently trading at CA$1.6819.
Further signs that front-runner in the Conservative Party leadership contest Boris Johnson had edged closer to becoming the Prime Minister have dampened sentiment in the Pound.
Investors continue to worry about the risks that the UK crashing out of the European Union on 31 October would have on the economy.
Former leadership candidate Andrea Leadsom has stated that she would be backing Johnson.
Speaking to Sky News, Leadsom stated that she believed he was the best candidate to bring the UK out of the EU at the end of October, and was an ‘election winner’.
Meanwhile, Pound Sterling (GBP) could slump against the ‘Loonie’ this evening if a second round of votes in the leadership contest places Johnson firmly in the lead again.
Canadian Dollar (CAD) Exchange Rates Flat as Oil Prices Fall for Second Day
Canadian Dollar (CAD) exchange rates have been left struggling as oil prices fell for the second day as signs mount that the US-China trade war has battered global economic growth.
This limited the ‘Loonie’s potential for gains against the Pound.
Due to concerns about US-China trade tensions and weak economic data, oil prices have slumped by around 20% in 2019 so far.
Commenting on the oil market, Stephen Innes, Managing Partner at Vanguard Markets said:
‘The [oil] market is in a rut and desperately in need of some robust economic data to get it out of this funk.’
However, analysts say tensions in the Middle East are expected to support prices. If that proves to be the case Canadian Dollar (CAD) exchange rates could benefit.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Outlook: Will Better-than-Expected UK Inflation Buoy GBP?
Looking ahead to Wednesday, the Pound (GBP) could rise against the Canadian Dollar (CAD) following the release of the latest UK Consumer Price Index (CPI).
If May’s inflation figures edge up further than expected, it could buoy Sterling.
Meanwhile, the ‘Loonie’ could rise following the release of the Bank of Canada’s (BoC) Consumer Price Index (CPI).
If CPI rises higher than forecast in May, it could cause the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate to rise.