GBP/CAD is concluding a bullish week during which it has recovered previous losses.
GBP/CAD i is now trading at 1.7427, up 0.24% as of 9:50 AM UTC. The price peaked at 1.7453, which is the highest level in over a month.
The sterling is driven by positive economic data at home, while CAD cannot deal with the pressure from plummeting oil prices.
Housing and Labor Market Data Support Sterling
Earlier today, mortgage lender Halifax said that house prices in the UK rose in February for the fourth consecutive month, which demonstrates that the confidence in the housing market is solid. House prices added 0.3% month-on-month after increasing by 0.4% in January. Economists expected a 0.2% rise. Prices rose 2.8% year-on-year, after showing a growth of 4.1% in January.
Separately, the Recruitment and Employment Confederation (REC) and KPMG said that their index of demand for staff increased last month to 57.2, which is the highest reading since January last year. The growth from January’s 54.8 is the biggest since July 2013. The index is closely monitored by the Bank of England (BoE), which uses it to assess the health in the labor market.
Permanent job placements increased at the fastest pace in 14 months, while temporary jobs declined for the second month in a row.
Now investors want to assess the potential impact of the coronavirus outbreak, especially after the UK reported the first death from the virus.
KPMG vice-chair James Stewart commented:
“Looking ahead, the current big unknown is the impact and influence the coronavirus may have on market confidence, let alone the lingering uncertainty around the actual Brexit deal. Businesses will be hoping that next week’s budget provides some relief and investment to help get the UK back on a path to growth.”
Oil Prices Drag Loonie Down
The Loonie cannot resist the pressure from declining oil prices, with both Brent and WTI crude brands tumbling over 4.30% on Friday, updating the lowest level since 2017. Prices started to drop after Russia reportedly refused to join the OPEC’s call to cut oil production by an additional 1.5 million barrels per day. However, some analysts anticipate that Russia would ultimately be forced to accept the agreement.
