Pound to Canadian Dollar by FxPremiere Forex Signals
GBP/CAD Exchange Rate Rangebound as Covid-19 Vaccine is Expected to Boost ‘Loonie’
The Pound to Canadian Dollar (GBP/CAD) exchange rate held steady today, with the pairing currently trading around CA$1.736.
The Canadian Dollar (CAD) struggled to gain against Sterling today because of sliding oil prices.
As a result, the commodity-linked ‘Loonie’ has suffered a sell off as the outlook for Canada’s economy – which is majorly reliant on its oil exports – appears increasingly uncertain.
Nevertheless, following the biotech company Moderna’s announcement of a 94.5% effective Covid-19 vaccine trial, markets are expecting a surge in oil prices. Worst Levels in a Month for Pound to Canadian Dollar EX
According to Alex Kimani, a finance writer for the Oil Price website, vaccine news has been ‘music to the ears of the oil and gas market’. Pound to Canadian Dollar
Any indications that Canada’s economy could be in for a bumpy ride in the months ahead would be CAD-negative.
Pound (GBP) Steady as Brexit Uncertainty Holds Back Sterling
The Pound held steady against many of its peers today as the UK’s Brexit and economic uncertainty continues to temper British markets.
Recent reports have even hinted that the European Union could delay its vote on Brexit until as late as December 28th.
Consequently, GBP investors are remaining cautious as there has been no clear news on the direction of UK-EU trade talks.
In British economic news, today saw the release of the latest CPI data for October, which beat forecasts and rose by 0.7% year-on-year.
Nevertheless, many analysts were pessimistic about inflation going forwards, saying it would likely fall owing to the Covid-19 restrictions.
Pound to Canadian Dollar
GBP/CAD Forecast: Could Rising Oil Prices Boost the ‘Loonie’?
Canadian Dollar (CAD) traders will be looking ahead to tomorrow’s release of October’s Canadian ADP Employment Change report. Bitcoin hits highest level
Any signs that Canada’s unemployment is rising could drag down the CAD/GBP exchange rate.
However, the ‘Loonie’ will continue to be driven by oil prices this week. Worst Levels in a Month for Pound to Canadian Dollar EX
If signs of a Covid-19 vaccine prove more substantial, then oil prices could rise and boost he Canadian Dollar. Dollar Weakens as Risk
Brexit developments will continue to drive the GBP/CAD exchange rate this week. As a result, we could see Sterling suffer if it looks less likely that Downing Street will secure a post-Brexit trade agreement. ECB Inflation Risks Mount
In UK economic data, Friday will see the release of October’s UK Retail Sales and Consumer Confidence report.
Any deterioration in the UK’s economic outlook would prove GBP-negative. Dollar Edges Higher; Sterling Expects Brexit Progress
Pound to Canadian Dollar