GBP/CAD: Pound Stronger Despite UK’s Gloomy Economic Data

GBP/CAD started the Tuesday session on a negative note but surged after the UK’s Office for National Statistics published a series of economic indicators, including the gross domestic product (GDP) evolution in the third quarter.

Currently, one British pound buys 1.7439 Canadian dollars, up 0.24% as of 10:42 AM UTC. So far, the daily low was at 1.7369, while the daily high was hit recently at 1.7463. Still, the price hasn’t recovered the losses caused by a correction that started yesterday, though it continues to follow the bullish path.

The UK’s economic growth decelerated in October to the slowest annual pace in about seven years. The ONS report comes ahead of the national election due Thursday.

The GDP grew by 0.7% in October year-on-year, which is the weakest advance since March 2012. In the third quarter, the growth was flat compared to the previous three months. Nevertheless, this is still a better result than a 0.2% decline expected by analysts.

Paul Dales, chief UK economist at Capital Economics, commented:

“The stagnation in GDP in October is unlikely to influence many people’s vote in Thursday’s election, but it could prompt some more (Bank of England officials) to consider voting for lower interest rates in the coming months.”

Separately, the ONS said that industrial production declined by 0.7% in the three months to October. The indicator rose in October by 0.1% in monthly terms and decreased by 1.3% year-on-year, with both figures falling short of analysts’ expectations by 0.1%.

The pound was driven by manufacturing production data, which fell in October by 1.2% year-on-year and rose 0.2% compared to September. Analysts expected a 1.4% decline and a modest 0.1% growth, respectively.

As for services and construction, both sectors couldn’t meet economists’ predictions, with construction output showing the biggest monthly decline since January last year.

In another report, the ONS said that the UK’s goods trade deficit widened as imports rose faster than exports. The indicator reached 14.5 million pounds in October, up from 11.5 billion pounds in Septembers, while analysts expected a contraction in the trade deficit. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.