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Category: Forex News

GBP/CAD Rate Muted Amid Lull In Data

By Published On: April 11, 20243 min readViews: 2740 Comments on GBP/CAD Rate Muted Amid Lull In Data

The Pound Canadian Dollar (GBP/CAD) exchange rate traded sideways on Tuesday as a lack of significant data releases left the currency pairing trapped in a narrow range.

At the time of writing GBP/CAD traded at around CA$1.7085, virtually unchanged from Tuesday’s opening rate.

Pound (GBP) Exchange Rates Lifted by Upbeat Retail Data

The Pound (GBP) managed to hold steady against the majority of its peers on Tuesday as it was underpinned by the latest retail sales monitor from the British Retail Consortium (BRC).

March’s yearly figures surged past expectations and came in at 3.2% rather than a more modest expiation of a 1.8% reading.

The index confirmed the highest figure in over two years, and was primarily put down to an increase in consumer spending over the Ester weekend.

Linda Ellett, KPMG UK’s Head of Consumer Markets, Leisure and Retail, explained: ‘High street sales growth was driven by food and drink, health and beauty and keen gardeners who headed outside to enjoy the first days of spring.
There were also some signs of improvement, with more categories starting to see positive sales growth in March for the first time in months. As April signals big increases in the sector’s cost base – through the rise in minimum wage rates and business rate hikes for the larger high street brands – retailers will be hoping that the bounceback of March sales is more than just an Easter blip.’

Driven by hopes that the UK retail sector may be turning a corner, Sterling managed to stay above ground during the first half of Tuesday’s European session.

foreign exchange rates

Canadian Dollar (CAD) Exchange Rates Quiet amid Lack of Data

The Canadian Dollar (CAD) treaded water against the majority of its rivals on Tuesday as a lack of any impactful economic data releases left the Canadian currency struggling to find a clear trajectory.

Elsewhere, the crude-linked ‘Loonie’ was mildly supported by a small rise in oil prices, as the commodity-driven currency benefits from increases in goods prices such as crude and brent oil.

Furthermore, CAD exchange rates could be struggling to catch bids as investors likely hold of placing any overly aggressive bets ahead of the Bank of Canada (BoC)’s upcoming interest rate decision, scheduled for release on Wednesday.

GBP/CAD Forecast: BoC Interest Rate Decision to infuse Volatility in the Canadian Dollar?

Looking ahead, the primary driver of movement for the Pound Canadian Dollar exchange rate for the remainder of the week is likely to be the Bank of Canada’s upcoming interest rate decision.
The BoC is widely expected to keep interest rates on hold at 5% on Wednesday. As such, investors will likely turn their focus to the central bank’s accompanying forward guidance.
Should policymakers hint at a possible upcoming interest rate cuts, CAD exchange rates could slump. However, should officials deliver a more hawkish stance surrounding the future of monetary policy, the ‘Loonie’ could firm in mid-week trade.

Turning to the Pound, a lack of domestic data releases for the majority of the week may leave the Pound vulnerable to shifts in market mood, and could see Sterling sentiment rise if markets turn to upbeat trade.

The one data release of note will come in the form of the UK’s latest GDP data, scheduled for release on Friday.

The data is forecast to report a minor 0.1% increase following a previous reading of 0.2%, which could see GBP exchange rates struggle to catch bids should the data confirm that growth slowed to a crawl in February.

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