Canadian Dollar To GBP Holds, CAD To USD, AUD, EUR & JPY Rates Down

Research by the National Bank of Canada (NBC) has found that the weak economic prospects in Canada could see the Liberal government having to rack up a deficit of CAD$90 billion over the next four years, although this news hasn’t weakened the CAD to GBP exchange rate.

According to the BNC, the Liberals have CAD$38 billion worth of spending ahead in order to meet their election promises, although lower-than-expected interest rates could help to offset costs slightly.

Today’s forex markets find the Canadian Dollar exchange rate is strong against the Pound because of weak predictions for UK GDP over the next two years, while the Euro is strong on safe-haven demand and the US Dollar advancing on the prospect of more rate hikes.

UK economic growth is now predicted to be around 2.3% this year by the Confederation of British Industry (CBI), a -0.3% downwards revision which has allowed CAD-GBP to advance.

The worsening global conditions and spate of poor US data recently hasn’t dissuaded the Federal Reserve from raising interest rates, if a pre-testimony from Janet Yellen ahead of today’s appearance is to be believed.

The US dollar vs Canadian dollar exchange rate fell after the news broke.

While acknowledging more threats to US growth, the pre-prepared comments suggest that the Federal Reserve Chair will confirm the Federal Open Market Committee’s (FOMC) intentions to continue with gradual interest rate hikes as conditions improve.

After Friday’s unexpected jump in the Canadian Unemployment Rate, which climbed from 7.1% to 7.2%, the Canadian Dollar (CAD) has been on a generally weaker footing against rivals such as the Euro (EUR) and US Dollar (USD).

Despite the Bank of Canada’s (BOC) decision to leave interest rates on hold at the first policy meeting of the year investors have been speculating that the weakness of domestic data could prompt policymakers to cut rates in the near future.

While oil has been struggling to maintain a substantial rally in recent days, lacking firmer support than rumours of a meeting between OPEC and Russia, the Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate has nevertheless been making fresh gains.

Here are the latest CAD exchange rates for your reference:

The Pound to Canadian Dollar exchange rate: GBP/CAD converts at 2.019

The canadian dollar to pound exchange rate: CAD/GBP conversion is 0.495.

The canadian dollar to euro exchange rate: CAD/EUR conversion is 0.637.

The canadian dollar to us dollar exchange rate converts at 1 CAD is 0.717 USD.

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