cad-bank-notes - CAD

GBP/CAD is confidently advancing on Friday, after trying hard to break below a strong support level yesterday.

Currently, GBP/CAD is trading at 1.7128, up 0.31% as of 9:50 AM UTC. Thus, the price is departing from the February low touched on Wednesday, when the pair tumbled 0.88%.

GBP/CAD: Britain’s Composite PMI Beat Forecasts

The pound has gained momentum after IHS Markit and CIPS released the preliminary readings of the purchasing managers’ index (PMI). The data showed that UK businesses maintained a bold growth rate this month, as factories saw the fastest increase in output in 10 months. Elsewhere, growth in the dominant services sector slightly slowed in February, but the surprising rebound in manufacturing has offset this decline.

The composite PMI, which merges the services and manufacturing indexes, maintained at 53.3, which is the highest figure since September 2018. Analysts polled by Reuters expected a reading at 52.8.

Tim Moore, associate director at IHS Markit, commented:

“The recent return to growth signalled by the manufacturing and services PMIs provides a clear indication that the UK economy is no longer flat on its back with our GDP nowcast pointing to 0.2% growth through the first quarter of the year.”

The manufacturing PMI advanced to 51.9 in February, from 50.0 in January, which is the highest level since April last year. Analysts expected a decline below the 50 mark, to 49.7. Note that the 50 mark separates growth from contraction. The manufacturing industry has performed well despite concerns that the coronavirus epidemic could hurt production. Moore added:

“Manufacturers noted that abrupt shortages of components from China had reverberated through their supply chains and led to difficulties sourcing critical inputs.

He said that suppliers’ delivery times component noted a record deterioration, suggesting that factories had to wait much longer to get their parts.

The services PMI fell to 53.3 in February, from 53.9 the previous month, while analysts expected a decline to 53.4. Moore explained:

The latest survey also revealed a solid upturn in the service economy, driven by improving domestic spending and a recovery in new business enquiries since the start of 2020.” 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.