Forex Market: GBP/CAD tumbles to four-week lows after Canadian manufacturing sales report

British pound fell to lows unseen in four weeks against the Canadian dollar, following a report to show sales in Canadas sector of manufacturing rose more than projected in January.

GBP/CAD fell to a session low at 1.8284 at 12:50 GMT, which has been the pairs lowest point since February 19th. At 13:48 GMT GBP/CAD was losing 0.27% for the day to trade at 1.8336. Support was likely to be found at February 19th low, 1.8186, while resistance was to be met at current session high, 1.8409.

According to Canadian Monthly Survey of Manufacturing (MSM), sales in countrys manufacturing sector increased 1.5% in January compared to a month ago, which has been the largest monthly gain since July 2013 and also exceeded preliminary estimates pointing to a 1.0% gain. In December the drop in manufacturing sales has been revised down to 1.5% from a 0.9% drop previously.

The survey includes statistical data regarding sales of finished products, inventories, new orders and orders not filled in Canadian manufacturing.

Meanwhile, earlier today UK Chancellor of the Exchequer George Osborne appointed Ben Broadbent as Deputy Governor of the Bank of England. In June 2011 Broadbent replaced Andrew Sentance on the Bank of England Monetary Policy Committee (MPC). Osborne did not mention who is to replace Ben Broadbent on the Committee.

George Osborne also announced the appointment of International Monetary Fund official Nemat Shafik as deputy governor for markets and banking at Bank of England. Shafik is to take Paul Fisher’s place on the MPC.

“The voting record of both Bean and Fisher signals a clear dovish lean,” Valentin Marinov, head of European Group-of-10 currency strategy at Citigroup Inc. in London, wrote in a note, cited by Bloomberg News. “One could thus argue that the changes could result in a less dovish MPC mix from here, which could make it more sensitive to positive economic and inflation surprises from here.”

The minutes of BoE most recent policy meeting will be released on March 19th.

The yield on UK benchmark 10-year gilts climbed to 2.68%. The yield fell to as low as 2.64% on March 3rd, which has been the least since November 5th.

At the same time, today Russias President Vladimir Putin said in Kremlin that the Russian Federation had no intention to harm Ukraine, while he saw the referendum in the Black sea peninsula as “open, fair”. Putin also said that he had no ambitions in other areas of Russias western neighbor.