Pound Under Pressure as Canada Jobs Data Outshines UK Growth Forecast
The Pound to Canadian Dollar exchange rate has been under pressure recently, and it's expected to remain that way in the coming week. Last week, GBP/CAD trended lower as stronger-than-expected Canadian employment data helped the 'Loonie' overcome earlier pressure from falling oil prices.
At the time of writing, GBP/CAD was trading around CA$1.8829, down approximately 0.4% over the week. The Pound (GBP) struggled to establish a clear direction as a sparse UK economic calendar left Sterling without meaningful domestic drivers.
The Canadian Dollar received a boost at the end of the week following the publication of Canada's latest employment report. A stronger-than-expected increase in employment helped drive unemployment lower, providing fresh support for CAD.
Looking ahead, the Pound to Canadian Dollar exchange rate could face further pressure following the publication of the UK's preliminary second-quarter GDP figures. Markets expect quarterly growth to slow from 0.6% to 0.2%. A sharper slowdown in economic activity could further reduce expectations for another Bank of England interest rate hike later this year and weigh on Sterling.