The Canadian Dollar to Pound (CAD/GBP) exchange rate has been in a tight range today after Canadian ecostats were mixed and investors waited for more news on Brexit.
Canadian Retail Sales and Inflation Data Prints
The Canadian Dollar lost some ground to the Pound on Friday after the Canadian Consumer Price Index fell on the year. The April inflation reading managed to reach the 0.3% forecast on the month, but the annual figure slipped from 2.3% to 2.2%.
A significant drop in inflation in coming months could quell anticipation that the Bank of Canada (BoC) might be planning to raise borrowing costs later this year.
Meanwhile, the Canadian Retail Sales number came in above expectations, at 0.6% in March. Economists had expected a more modest 0.4%, but the announcement also saw the February figure boosted to 0.5%. However, excluding autos, the economic indicator noted a contraction of -0.2%, missing the 0.5% March prediction after February’s flat 0.0%.
The Canadian Dollar has been offered some support in recent days after oil–Canada’s largest export–reached $80 per barrel for the first time since 2014, but some industry experts expect a decline to take place, rather than more rises.
Oil Prices Set to Fall Says BP – Will the CAD Exchange Rate Drop Too?
BP CEO Bob Dudley said:
‘Clearly the withdrawal of the United States from the Iran nuclear deal has brought a lot of uncertainty to the market. Two years ago, when the price was $27, it was great for global growth, the engines of consuming economies. But it was terrible for producing countries and that led to producing countries not being able to purchase things as well. That was not a healthy price. I think when you get above $80, that’s not a healthy price either.’
The Canadian Dollar is currently trending at levels of 0.5757 versus the Pound (CAD/GBP). The Canadian Dollar is trading at 0.7818 against the US Dollar (CAD/USD).