GBP to CAD Forecast: Canadian Dollar Exchange Rates Hold Firm Ahead of Employment Data Release

Pound to Canadian Dollar Drifts Lower as Global Sentiment Improves

The Canadian dollar has returned to levels seen at the beginning of the week with GBPCAD once again trending back above the 1.74 (interbank) mark as the markets prepare themselves for next week’s Bank of Canada interest rate decision. The meeting comes with the BOC having already slashed rates 3 times in March to help the Canadian economy rebalance as the virus pulled business to a standstill.

The central bank reportedly called 52 leading firms and a further 11 industry experts in order to be able to get a better understanding of the areas of the economy that have been the worst affected, with energy companies showing the most signs for concerns. Specialists have already reported the impacts to the oil sector may prove substantially worse than the 2008 and 2015 crashes.
Given Oil is Canada’s leading export, a deterioration in returns here could spell weakness for the Canadian dollar. Something to consider if you have a long term Canadian dollar requirement.

When Might Be a Good Time to Look at CADGBP Transfers?

Today’s Key Employment data out early afternoon of which the unemployment rate and net change in employment provided by Statistics Canada might prove to be the major market movers for CADGDP exchange rates. The current consensus on the later that an added 350 thousand people will file for unemployment, up from just 30 thousand from the previous release.

Investors might be watching closely given the seismic climb in unemployment in the US as a result of the accelerated spread of COVID-19. It will be interesting to see if a similar jump here could surprise the markets and therefore drive added volatility on Canadian dollar exchange rates. It is worth noting that these releases may well have an influence in the Bank of Canada’s next interest rate decision which is due mid-way through next week and could potentially hold added weight with investors as a result.

Just yesterday, Canada’s biggest bank Royal Bank of Canada confirmed that it had already differed at quarter of a million mortgage payments and other loans to help alleviate the pressure being posed on it’s clients since the outbreak of the virus. The concern is that not all banks have the same financial might as RBC have in the way of capital and liquidity, which could in the long run force the BoC to make added concessions to ensure lending conditions are supported.

If you currently have a CADGBP requirement, feel free to register your interest on the link below so a dedicated account manager can help plan a transfer around these releases and limit your exposure.

If you have a currency requirement and would like to discuss your options, feel free to get in touch using the form below.