The Canadian Dollar has weakened across the board after the Bank of Canada has announced that it will be keeping Interest Rates unchanged, despite the Canadian economy slowing during the second quarter of this year.
This news impacted financial markets as the Canadian Dollar has weakened since, yet this weakness hasn’t filtered over to the GBP/CAD pair as the Pound is under considerable pressure itself at the moment.
The value of the Pound has been increasing as of late due to some much better than expected economic data out of the UK has buoyed the currency. Recent PMI (Purchasing Managers Index) figures show that the construction, manufacturing and services sector are all on the up at the moment, with the services figure posting the biggest month on month gain on record.
After spiking upward off the back of these news releases, a combination of profit taking coupled with some disappointing Manufacturing and Production figures have left the Pound under a bit of pressure, and the Pound has been slowly declining since Wednesday mornings news release which has prompted a lot of our clients to take advantage of Sterling’s recent gains in case they aren’t available for much longer.
The major news release this week which could affect exchange rates will be tomorrows Canadian Employment figures which will be released at 1.30pm UK time. Analysts are expecting the figure to remain at 6.9% so expect swings in the exchange rate between GBP and CAD should that figure deviate from the expectation.
The oil price is also worth following for those with a GBP/CAD currency requirement as it can impact CAD exchange rates due to the fact it’s Canada’s biggest import. I’ll be happy to discuss the relationship between the two should you wish to get in touch.