This weeks GBP/CAD exchange rate movements

This week there is plenty of data being released from both sides of the GBP/CAD cross that could move the Sterling to Canadian Dollar rates dramatically. In today’s report we will look at what data is due to be released and how it may effect the exchange rates.

This weeks UK data releases and how they may effect you currency purchase

This week we have some of the months most important data being released. The week kicks of on Monday with manufacturing, followed by construction and services PMI on Wednesday and Thursday respectively. Thursday brings possibly the most influential data in the form of a Bank of England decision on interest rates and stimulus packages.

The construction, manufacturing and services data are all very good indicators of economic health and will show how the UK economy is performing. If any of this data comes in above their predictions, the Pound is likely to strengthen greatly against its counterpart, with the Canadian Dollar being no exception.

The main mover of exchange rates however, is likely to be the Interest rate decision on Thursday, as a raise in interest rates would have the largest effect on sterling strength, if it were to happen.

This weeks Canadian Data and how it may effect GBP/CAD exchange rates

It is also a very big week for the Loonie as well, as there are many pieces of influential data to cause volatility. Unlike the UK, the week really kicks off on Wednesday as there is no data of note until mid week.

The first of these would be trade balance figures. The reason they are so important is that Canada has a very much commodities driven economy and oil is their main export. If the figures show the amount of Oil being exported is increasing, it shows more money coming into the country, which in turn strengthens the Canadian Dollar.

We also have the Bank of Canada’s interest rate decision. This is not forecast to see any change in favour of the Loonie, so unlikely to have much of an effect on exchange rates.

Looking at the end of the week, Thursday and Friday will bring building permits, employment change and the Unemployment rate. Again, all of these are very good indicators of economic health and could cause alot of volatility in the markets if the data strays to far from the forecast.

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