GBP/CAD exchange rates end the week falling

In today’s report we will look at why the GBP/CAD exchange rates have fallen, what will move them in the near future and how to get the best rates of exchange.

UK Figures cause GBP/CAD exchange rates to fall

After the long bank holiday weekend, we have seen Sterling steadily climb against the Canadian Dollar for the majority of the week. This was at least until Friday when the final UK data of the week failed to reach the predictions.

All movements in the exchange rates on Friday were likely to come off the back of news from the UK as there was no data of note out from Canada to end the week. The UK released month on month Retail Sales which were forecast for a decline of 0.4% and BBA Mortgage Approvals which were forecast for 48.9k.

The retail sales were actually well above the forecast and came out at a positive 0.1%. This would have caused Sterling to strengthen against its counterparts but shortly after was the release of the latest mortgage figures. Most were expecting these to show strong growth as the UK housing market has been showing very promising signs recently. This turned out not to be the case as they came in below forecast at 45.9k.

The mild improvement in retail sales was not enough to keep the Pound from falling against the Canadian Dollar as rates came back down to around 1.85.

What will move exchange rates next week?

Next week we could see rates move substantially as there are some very important pieces of data due to be released. For those of you looking to buy or sell a currency in the near future, the most important thing to watch out for the GDP figures from the UK on Tuesday and Canada on Wednesday. These will give the clearest indication of the state of the economies. Other than these, the UK Manufacturing and Construction data will be the figures to watch out for, as they will give a clear indication on how the economy is likely to perform over the next month.

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