GBP to CAD is still climbing
Today we have seen a choppy days trading but the GBP to CAD is still climbing. In todays report, lets look at what is causing today’s volatility and where the exchange rates may be heading.
GBP – CAD Graph
UK Services data
Today we had the latest Services PMI numbers from the UK this morning. Earlier this week we have already seen both manufacturing and Construction PMI fail to meet the estimates. Where Sterling has dropped against a basket of major currencies, the Canadian Dollar has been the exception as a dovish speech by Bank of Canada Gov. Poloz, kept the Canadian Dollar weakening.
Sadly for Sterling, the Services PMI data followed suit and failed to reach the forecast figures. This caused the Pound to fall once again and this time the GBP to CAD exchange rates fell with everything else.
Canadian Building permits
It looked like the Canadian Dollar was getting a little respite from the advances of Sterling after the further poor data from eth UK. This however was not to last. This afternoon we had the latest building permits from Canada. This has a fairly large effect on the markets as gaining a permit is normally the first step in any construction project. As the numbers came in well below forecast at a negative -7%, this indicated a tough time ahead in the industry in general and weakened off the CAD once again.
After falling over the cause of he morning, this caused the GBP to CAD exchange rates to rise once again, climbing above 1.86.
Where are the exchange rates heading?
Tomorrow we have some of the most important data of the week from Canada. We have employment change, unemployment rate, IVEY MPI and a speech by Gov Council Member Schembri.
The unemployment numbers, along with the speech will give a very good indication of the health of the Canadian economy and the possible future direction of exchange rates. Mr Schembri would have to be a lot more optimistic than the previous speech by Gov Poloz earlier in the week, if the Canadian Dollar is to strengthen.
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