The Pound to Canadian Dollar exchange rate (GBP/CAD) rose sharply in the wake of the decision, going to 1.6599, taking bank payment rates to approximately 1.6110, competitive cash and holiday money rates to ~1.6430 and competitive payment rates to ~1.6530. The U.S. Dollar to Canadian Dollar exchange rate (USD/CAD) also showed a spike, rising from 1.3350 to 1.3420, taking taking bank payment rates to approximately 1.3040, competitive cash and holiday money rates to ~1.3297 and competitive payment rates to ~1.3378. Image: Bank of Canada policy interest rate. The Bank said it was prepared to raise interest rates again if inflation data warranted such a response. But ING says the next move from the BoC is likely to be an interest rate cut.
Image © Adobe StockThe Canadian Dollar rallied against most counterparts in the final session of the week after Statistics Canada reported another surge in employment that led the jobless rate back down near to the record low recorded last summer with possible implications for Bank of Canada (BoC) policy. Canadian Dollars were bought widely after Statistics Canada said employment grew by 105k or 0.5% in December and when economists had been looking on average for a meagre 5k increase in payrolls to end an otherwise strong year. "The big gain in employment was once again not reflected in working hours, which Statistics Canada stated were little changed compared to the prior month. Above: Pound to Canadian Dollar rate shown at 15-minute intervals alongside USD/CAD. Above: Pound to Canadian Dollar rate shown at daily intervals alongside USD/CAD.27 days ago Pound Sterling LIVE
Above: Pound to Dollar rate at 2-hour intervals alongside AUD/USD and EUR/USD. "For the USD, we think it will be difficult to push renewed weakness ahead of US CPI next week," Issa writes in review of Friday's data. Above: Pound to Dollar rate shown at daily intervals with Fibonacci retracements of late September recoveries indicating possible areas of technical support for Sterling. "We expect ‘core’ (excluding food & energy products) price growth to slow to 5.6% year-over-year in December from 6.0% in October. While Friday's GDP data is the highlight of the week, the market will also likely pay close attention to remarks from the BoE's Governor Andrew Bailey, Huw Pill and Catherine Mann on Monday, Tuesday and Thursday.24 days ago Pound Sterling LIVE
© European Union, reproduced under CC licensingToday we get the ECB decision, and another 75bps hike is expected…. EUR/USD has already broken above its 2022 downtrend and back above parity and did so with a decent rally. Above: EUR/USD shown at daily intervals with Society of Technical Analysts annotations and indicators. Above: GBP/USD shown at daily intervals with Society of Technical Analysts annotations and indicators. Above: USD/JPY shown at daily intervals with Society of Technical Analysts annotations and indicators.3 months ago Pound Sterling LIVE
"The main risk for USD/JPY is that UST 10Y yields fail to find extra support at 3.50%," says Francesco Pesole, an FX strategist at ING. Above: GBP/JPY at hourly intervals with USD/JPY as well as 02-year and 10-year U.S. yields. Rising wages would potentially prompt the BoJ to revise its inflation forecasts higher and so could necessitate a change in its monetary policy settings. BoJ policy has made the Yen a popular 'funding currency' for traders speculating on other currencies as well as for investors in real economy assets. Above: GBP/JPY shown at weekly intervals alongside USD/JPY as well as 02-year and 10-year U.S. bond yields.2 months ago Pound Sterling LIVE
"The government is set to announce tax hikes next month in the face of recession and the cost of living crisis. Foley and Rabobank's forecasts suggest the Pound to Euro rate will fall back to 1.1111 by the early months of the new year. Above: Pound to Euro rate shown at 2-hour intervals alongside GBP/USD. This and a Thursday's Euro sell-off saw the Pound trading near 1.16 ahead of the weekend but it remains to be seen if Sterling can sustain its recovery. Above: Pound to Euro rate shown at daily intervals alongside GBP/USD.3 months ago Pound Sterling LIVE
Meanwhile, the Canadian Dollar's resilience served to accentuate the mid-week decline in GBP/CAD, which began trading on Monday above 1.68 and close to nine-month highs but has since retreated below the 1.65 handle. Above: Pound to Canadian Dollar rate shown at daily intervals with Fibonacci retracements of 2022 decline indicating possible areas of technical resistance for Sterling and selected moving-averages denoting possible technical supports. Above: GBP/CAD at weekly intervals with Fibonacci retracements of 2022 decline indicating possible areas of technical resistance for Sterling and selected moving-averages denoting both technical supports and resistances. "A decline in gasoline prices on the month, and an easing in the annual inflation rate in that category, drove the overall deceleration. Despite the miss against market expectations on Wednesday, Canadian inflation was on track in November to decelerate more quickly for the final quarter overall than expected by the Bank of Canada (BoC), which currently forecasts an annualised inflation rate of 7.1% for the period.1 month ago Pound Sterling LIVE
Sterling was trading near to some of its highest levels since early August when approaching 1.56 against the Canadian Dollar again on Tuesday. Above: Pound to Canadian Dollar rate at daily intervals with Fibonacci retracements of February 2022 downtrend indicating possible technical resistances for Sterling. We have adopted a very bearish stance on the CAD since June," says Mazen Issa, a senior FX strategist at TD Securities, in reference to the Canadian Dollar. Another large interest rate rise would not help the economy and may make the housing market correction worse but is still expecteddue to inflation rates that remain elevated at multiples of the BoC's 2% target. This is why TD Securities and CIBC Capital Markets look for the Canadian Dollar to weaken and USD/CAD to rise following the decision.3 months ago Pound Sterling LIVE