Pound Rockets Against Canadian Dollar on Sudden Slump in Oil Prices
The Pound to Canadian Dollar exchange rate (GBP/CAD) has shot higher in the wake of a dramatic slump in global oil prices.
US WTI crude oil slipped 3% in late-afternoon trade in London, taking the oil-linked Canadian Dollar down with it.
USOil drops 3% over the past 10 minutes ???? pic.twitter.com/4CQUF4a6Y9
— FXCM (@FXCM) June 7, 2017
Oil is one of Canada’s most important exports meaning CAD is sensitive to moves in this commodity.
At the time of writing the GBP/CAD exchange rate is at 1.7499, having been as low as 1.732 earlier.
The Canadian Dollar is also seen lower against the likes of the Euro and US Dollar.
The other major oil-linked currency - Norway's Krone - is also sharply lower.
Oil Inventories Build
Driving oil prices lower was a jump in US crude inventories which rose by 3.3m barrels last week, the energy department reported.
That contrasted with economist expectations for a draw of 3.1m barrels.
Gasoline stocks were up by 3.3m barrels, also confounding estimates of a 275,000 barrel fall.
