The Pound Canadian Dollar (GBP/CAD) exchange rate has been muted since markets opened this morning as a lack of economic data from the UK limits the appeal of Sterling.
At the time of writing the GBP/CAD pairing CA$1.7374 level as the Canadian Dollar pushes against a weakening US Dollar.
Pound (GBP) Struggles for Direction on Absence of Economic Data
The Pound (GBP) has been steady against the Canadian Dollar (CAD) this morning after a sell-off of Sterling yesterday afternoon.
A lack of economic data is capping Sterling today as investors rely on domestic coronavirus developments to drive movement in the GBP exchange rate heading into the weekend.
This morning Labour leader Kier Starmer has urged the government to bring forward the end of self-isolation for those who have been fully-vaccinated to 7August.
Speaking to UK television this morning, transport secretary Grant Shapps defended to decision to wait until 16 August to introduce the measures:
‘The reality is that people putting themselves in self-isolation has been a factor in saving a lot of lives because it turns out that one in three people who are requested to self-isolate do end up developing symptoms, so it is, if you like, the only remaining measure that is being taken at the moment.’
‘We have got systems in place now where testing can take place at 2,000 different locations we’ll have for key workers to be tested so they don’t have to self-isolate in advance of the 16 August when we will then not require people to self-isolate but instead be tested if they are pinged or asked to self-isolate.’
The Pound could be open to losses throughout the day if the Canadian Dollar continues to capitalise on an uptick in oil prices.
Canadian Dollar (CAD) Supported by US Dollar Weakness
The Canadian Dollar (CAD) has been supported during this morning’s session as a broad weakness in the US Dollar (USD) bolsters the appeal of the ‘Loonie’.
Oil prices remain around $75 a barrel, adding further support to the commodity-correlated currency before the weekend.
This afternoon, the latest GDP figures from Canada could cause CAD exchange rates to tumble however, as growth is expected to remain stagnant at 0.3% during May.
This is owed to the coronavirus situation that was gripping the country at the time, moving into Q3 Canada has enjoyed an uptick in coronavirus vaccinations.
Pound Canadian Dollar Exchange Rate Outlook: PMI Figures in Focus
Heading into next week, Pound investors will look towards the latest PMI figures from the UK to give a broad overview into how the economy is currently performing.
Canadian Dollar traders will be holding onto the end of next week to see the latest employment change figures from Canada to drive movement in the exchange rate.
The GBP/CAD pairing will continue to focus on any further coronavirus developments during the start of next week.