GBP/CAD Exchange Rate Under Pressure as Canadian Retail Sales Data Looms
The Pound to Canadian Dollar exchange rate has been under pressure due to weaker-than-expected services PMI from the UK. At the time of writing, the GBP/CAD exchange rate was trading at CA$1.8739, down roughly 0.2% from the start of Wednesday's session.
The service sector in the UK remains in a state of expansion, but output growth is slowing as inflationary pressures continue to build. This has reinforced expectations that the Bank of England will need to tighten monetary policy in the near-term.
On the other hand, the Canadian Dollar has remained resilient, shrugging off the recent pullback in global energy prices. The publication of Canada's latest retail sales data on Thursday may influence the Pound to Canadian Dollar exchange rate, with a rebound in sales growth potentially lifting the CAD.