by Jon Beddell
Foreign Currency Market Update – GBP / CAD Update
A slight upward revision to the UK’s second quarter GDP figures to 1.2% did little to lift Sterling last week as investors focus on the longer term impact of the government’s austerity measures. On the other side of the Atlantic the US suffered a drastic revision downward in their Q2 GDP figure, from 2.4% to 1.6%, with a rise in net imports largely to blame. Analysts had been expecting a worse revision, so markets were not unduly perturbed by the data. Canadian second quarter growth figures are due out today, with analysts expecting annualised growth of 2.5%, down from the 6.1% seen in the first quarter. A worse than expected widening in the trade balance had little impact last week.
Since last week’s report the Pound has remained in a tight range, pushing at the recent highs around 1.6400. It seems to have found resistance around these levels, and while the trend is still positive for Sterling, we advise clients to cover half of any CAD requirement here while the going is good.
Related posts:
- The Pound declines against the majors after Uk economic growth accelerates by less than forecast in the third quarter
- The Dollar remains firm despite economic growth slowing by more than forecast in the fourth quarter
- Canadian Dollar Foreign Exchange Rate Forecast
- The Dollar weakens significantly after advanced GDP growth in the second quarter slows to 2.5% which was under expectations
- The Pound continues to rise as UK economic growth accelerates in the first quarter
