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Pound Rockets Against Turkish Lira (GBP/TRY), Higher Against Canadian Dollar and Swiss Franc (GBP/CAD, GBP/CHF)

July 24, 2018 2:43 pm | Modified September 4, 2018 7:17 am
CAD, CHF, TRY | BY Ashleigh Fox

The Pound to Swiss Franc (GBP/CHF) and Sterling to Canadian Dollar (GBP/CAD) exchange rates have been trending higher in Tuesday’s trading, while the Pound has rocketed against the Turkish Lira (GBP/TRY).

Canadian Dollar (CAD) Exchange Rate Reacts to Oil Prices and NAFTA Comments

Yesterday, oil prices tracked lower and the Canadian Dollar followed, weakening against the US Dollar (CAD/USD). Additionally, the North American Free Trade Agreement (NAFTA) progress seems to have stalled and be causing some concerns. Last week, US President Trump intimated that the US might organise a deal with Mexico and then create a different one with Canada later on. Meanwhile, Canada still hopes for an agreement that works three ways.

Additionally, Canadian Wholesale Trade Sales increased by 1.2% in May, far better than the 0.7% forecast and the -0.1% in April. The Canadian Dollar has been stronger against Sterling (CAD/GBP) in recent weeks after stronger-than-forecast economic data came to light. Friday saw Retail Sales jump by 2.0% in May, above the 1.0% forecast, while the Canadian Consumer Price Index showed a rise in inflation to 2.5% on the year in June from 2.2%, and above the 2.3% prediction. The ecostat managed to reach a six-year high and spurring hopes for more interest rate rises.

Meanwhile, the Pound to Swiss Franc (GBP/CHF) exchange rate is trending just above the 1.30 mark. Recent Swiss economic data showed Swiss Watch Exports rose by 11.8% in June on the year, doubling the previous 5.3% reading. Meanwhile, general Swiss Exports hit 0.5% in June on the month following the previous month’s flat 0.0%. Next week will see the release of the Swiss KOF Leading Indicator which could offer the Franc some moderate movement, as well as the SECO Swiss Consumer Confidence, Retail Sales, Manufacturing PMI, and Consumer Price Index all out at the end of the week.

Turkish Lira (TRY) Exchange Rate Drops as Interest Rates Kept on Hold

In Turkey, the Lira has taken a tumble in Tuesday’s session, trading around 3.60% lower against the Pound (TRY/GBP) after the central bank left its interest rate benchmark unchanged. Borrowing costs remain at 17.75%, but markets had widely anticipated an increase on account of inflation levels and the weaker Lira.

The Pound to Turkish Lira (GBP/TRY) exchange rate is trading at 6.4321. The Pound to Swiss Franc (GBP/CHF) exchange rate is trading at 1.3042. The Pound to Canadian Dollar (GBP/CAD) is trading at 1.7276.

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