Pound Canadian Dollar Exchange Rate Heads Higher on BoC Interest Rate Decision

The Pound Canadian Dollar (GBP/CAD) exchange rate had strengthened this morning on the back of the latest interest rate decision from the Bank of Canada yesterday afternoon.

At the time of writing the GBP/CAD pairing are trending around the CA$1.7530 level as an absence of data limits any major Sterling gains.

Pound (GBP) Strengthens on UK Coronavirus Developments

The Pound has found itself steadily strengthening against the Canadian Dollar this morning despite an absence of economic data from the UK.

Domestic coronavirus developments continue to be eyed by investors to drive movement in GBP exchange rates.

It comes as a final decision is expected to be made today regarding children aged 12-15 receiving the coronavirus vaccine in the UK.

Health and Social Care Secretary Sajid Javid spoke to UK television regarding the imminent decision:

‘I want to give them [the Joint Committee on Vaccination and Immunisation] the breathing space, it’s their independent view and that’s exactly what it should be. But I would expect to hear from them in the next few days.’

‘If there is a difference of opinion between the child and the parent then we have specialists that work in this area, the schools vaccination service. They would usually literally sit down with the parent and the child, and try to reach some kind of consensus.’

Canadian Dollar (CAD) Slides on BoC Interest Rate Decision

The Canadian Dollar has found itself struggling for direction against the Pound following the latest interest rate decision from the BoC yesterday afternoon.

The bank chose to keep interest rates on hold in Canada to help support the country’s economic recovery from the coronavirus pandemic.

Policymakers remained cautious surrounding Canada’s economy as they noted that a further wave of the pandemic paired with supply-chain issues could derail the recovery.

A statement from the Bank of Canada, read:

‘The global economic recovery continued through the second quarter, led by strong US growth, and had solid momentum heading into the third quarter. However, supply chain disruptions are restraining activity in some sectors and rising cases of COVID-19 in many regions pose a risk to the strength of the global recovery.’

Pound Canadian Dollar Exchange Rate Outlook: UK GDP in Focus

The Pound Canadian Dollar exchange rate looks to be driven by a range of data heading into the weekend.

For Pound investors, industrial production figures alongside UK GDP data will be eyed by investors tomorrow morning.

Canadian Dollar traders will look towards employment change figures paired with the strength of the oil sector to bolster the appeal of the commodity-correlated ‘Loonie’.

Georgina Clissold

Contact Georgina Clissold