Pound Sterling to Canadian Dollar GBP/CAD Exchange Rate Recoups Losses
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate recouped losses as the week progressed and oil prices fell amid oversupply concerns. A less-than-impressive manufacturing shipments report for Canada and an increase in UK inflation levels also supported the GBP/CAD pairing. The UK was shown to have emerged from deflation in May, as forecast by the Bank of England. Friday's Canadian CPI is likely to trigger additional currency market movement before the weekend.
Canadian Dollar (CAD) Gains on Pound (GBP), US Dollar (USD) Exchange Rates as Oil Prices Rise
The Pound Sterling to Canadian Dollar exchange rate softened on Monday due to the ‘Loonie’ receiving support from a rise in oil prices. A lack of market moving domestic data releases out of the UK means that Sterling is likely to experience a relatively quiet session.
Oil Production Could be Disrupted by Tropical Storm, Further CAD/GBP, CAD/EUR Currency Gains Could be Ahead
A storm on its way to the Gulf of Mexico could impact upon global oil supplies as a number of oil rigs in the region are expected to halt drilling. The large tropical storm in the southern Gulf of Mexico has an 80% risk of developing into a full blown cyclone over the next 48 hours. The leading Gulf of Mexico oil producer Shell Oil Company has begun to evacuate its workers from offshore platforms as a precautionary measure. The Gulf of Mexico produces 17% of US crude oil production and 5% of dry national gas output, according to the US Energy Information Administration.
‘The weather system is expect to move north-westward over the next couple of days across the western Gulf of Mexico, where upper-level winds are forecast to gradually become more favourable for tropical cyclone formation. Regardless of tropical cyclone formation, tropical storm conditions are possible along portions of the middle and upper Texas coast and the western Louisiana coast,’ said the US National Hurricane Service.
Even if tropical development does not occur, this surge of tropical moisture will bring a dangerous flash flood threat to oil producing states such as parts of Texas, including Houston and Dallas, as well as Louisiana early to midweek. Generally, 3 to 5 inches of rain is expected, with locally higher amounts possible. The threat to oil production was enough to send prices climbing.
Canadian Dollar (CAD) Exchange Rate Advances as Middle East Conflict Pushes Oil Higher, US Data to Impact Trading Today
Airstrikes launched by Saudi Arabian jet fighters continued over the weekend despite hopes for a ceasefire being reached between the Saudi led coalition and Houthi rebels who have overrun most of Yemen. As Saudi Arabia is the worlds largest producer of oil, worries were heightened that production in the nation could be negatively affected by the fighting. Worries eased slightly on Monday as delegates from both sides met in Geneva to hold United Nations led peace talks. The talks would bring together representatives of the exiled government, the Houthis, former president Ali Abdullah Saleh's General Peoples' Congress and other opposition groups.
With no market moving Canadian data due until Friday, the ‘Loonie’ will be influenced by oil prices and data releases from elsewhere.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending in the region of 1.9143