The Pound Canadian Dollar (GBP/CAD) exchange rate is steady this afternoon following the easing of restrictions in England.
At the time of writing the GBP/CAD pairing are trading at around CA$1.7252.
Pound (GBP) Supported by Second Stage of Lockdown Easing
The Pound is being supported through much of today’s session as England’s second stage of lockdown easing comes into force.
The easing of restrictions is hoped to slowly but surely reopen the UK’s economy as non-essential retail and outdoor hospitality are now allowed to open.
As reported by Reuters earlier today, footfall across retail in the UK jumped:
‘The reopening of England’s shopping districts drew the crowds on Monday, with footfall across all UK retail destinations to 10am BST jumping 218% on last week, Springboard data showed.’
‘Springboard said UK footfall to shopping centres had risen by 340%. With infection numbers falling in Britain, English shops, hairdressers, gyms and pub gardens reopened early on Monday.’
Prime Minister Boris Johnson has reminded the public to stay safe as restrictions are lifted, speaking this morning he said:
‘I urge everyone to continue to behave responsibly and remember ‘hands, face, space and fresh air’ to suppress Covid as we push on with our vaccination programme.’
Any concerns over the UK’s vaccination rollout being delayed have been largely ignored today as investors remain optimistic surrounding the UK’s economic reopening.
Canadian Dollar (CAD) Limits Losses on Positive Canadian Job Data
Although the Canadian Dollar has been down against the Pound today, the currency has managed to limit losses following the positive Canadian employment data released on Friday, unemployment fell to 7.5% beating forecasts.
A stronger than expected employment change data report from Canada has helped to fill the Bank of Canada (BoC) with confidence surrounding Canada’s economic growth and recovery.
The BoC’s Business Outlook Survey released this afternoon showed a continued improvement in business sentiment, with the indicator hitting its highest level since mid-2018.
However, Canada is still struggling against its coronavirus situation after Ontario entered stricter lockdown restrictions just before the weekend as ICU patients in the province increase.
Dr Michael Warner, medical director of critical care at Michael Garron Hospital in Toronto said:
‘On paper, Ontario has about 2,300 ICU beds. In practice, though, we have far fewer because we simply cannot staff them.’
A global risk-off mood has also caused the Canadian Dollar to head lower against the Pound this afternoon.
Pound Canadian Dollar Exchange Rate Outlook: UK GDP Data in Focus
For Pound investors tomorrow will see the release of the UK’s GDP figures for February which are forecast to have grown 0.6%, up from January’s -2.9% drop which could push Sterling higher.
Tomorrow will also see the UK’s industrial production data from February, due to strict lockdown restrictions imposed at the start of the year the figures are expected to remain in contraction.
For Canadian Dollar traders, the exchange rates will continue to be driven by any further coronavirus developments, any indication that Canada’s coronavirus situation is worsening would pull CAD down.