The Pound Canadian Dollar (GBP/CAD) exchange rate has weakened this morning as the commodity-correlated ‘Loonie’ finds itself supported on the back of steadying oil prices.
At the time of writing the GBP/CAD pairing are trending around the CA$1.7356 level as the Pound finds itself struggling on the back of an absence of economic data from the UK.
Pound (GBP) Struggles on Lack of UK Economic Data
The Pound has been struggling for direction across the board this morning as absence of economic data from the UK does nothing to support Sterling appeal.
Furthermore, investors and the public are beginning to prepare for the return of schools in the UK, and what it could mean for coronavirus cases.
As schools prepare to make their return in the next week, the UK records 207 daily coronavirus related deaths – the highest level since March.
I think parents would find it deeply reassuring to have a choice of whether their children should have a vaccine or not.
The education secretary Gavin Williamson this morning spoke to UK television regarding the Joint Committee on Vaccination and Immunisation (JCVI) and their decision on whether to vaccination younger children:
‘We obviously wait for the decision of JCVI. Probably a lot of us are very keen to hear that and very much hope that we’re in a position of being able to roll out vaccinations for those who are under the age of 16. I would certainly be hoping that it is a decision that will be made very, very soon.’
Canadian Dollar (CAD) Holds Steady on Rising Oil Prices
The Canadian Dollar remains supported against many of its major rivals this morning as the oil market remains steady.
It comes as the Organization of the Petroleum Exporting Countries (OPEC+) and its allies chose yesterday to stick to gradual output hikes, a policy decision decided in July.
The OPEC+ said in a statement that:
‘While the effects of the COVID-19 pandemic continue to cast some uncertainty, market fundamentals have strengthened and OECD stocks continue to fall as the recovery accelerates.’
The Canadian Dollar has been further supported against a weaker US Dollar, which in turn has bolstered the appeal of the ‘Loonie’.
Pound Canadian Dollar Exchange Rate Outlook: UK Services PMI in Focus
Tomorrow will see the release of the latest UK services PMI for August which will give an insight into how the sector is currently performing.
If the PMI beats forecasts and shows extended growth in the sector then Sterling could see itself pushing higher heading into the weekend.
Canadian Dollar traders will be looking towards any further developments in the oil sector and the global market mood during Friday’s session.