The Pound to Canadian dollar exchange rate remained halted early yesterday, with a trading rate of around CA$1.7011. Tuesday’s UK labour figures were disappointing and brought down the strength of GBP and its interlinking currencies like CAD.
UK labour figures revealed, currencies lose strength as a result
Tuesday’s labour figures for the United Kingdom were unimpressive. Most of all, the unemployment in the UK slumped by around 58,000 in the third quarter. With the rate falling back to 3.8%. This left the pound under pressure as the largest drop in unemployment in four years was observed.
There is a cause for concern as the UK labour market is showing signs of slowing down. Rumours suggest that this will be mostly due to the upcoming December elections. The data also showed that the number of vacancies were also down, the largest decline since 2009.
The Canadian Dollar looks flat as prices of oil rise
Starting the week, the demand of oil decreased as markets were uncertain about the potential fallout from the US-China trade war. President Trump mentioned over the weekend that the talks were going ‘very nicely’ but would only pursue a deal if it was the right one for the United States. The Canadian dollar was flat against the pound yesterday as oil prices edged up. Investors in CAD are hoping that the president had positive words to spread about the deal as he attended the New York Economic Club last night. This would give a much needed boost to the ‘Loonie’.
GBP/CAD rate future outlook weighs heavily upon UK inflation figures
Today (Wednesday 13th), the UK will be releasing it’s inflation rate figures. There is a risk that GBP could slump against CAD should the results be poor. Analysts have suggested that GBP is set to slide if monthly inflation contracts for the month of October. There are also worries that it may not meet the Bank of England’s 2% target, which would also see the pound sentiment decline.
For CAD, focus will be back on the US-China trade talks, progression is good for the currency and that is what investors are keeping their fingers crossed for. Many are hoping for a solution soon as the volatility and unpredictability has the global economy in its clutches
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