Yesterday’s high: C$1.5968
Yesterday’s low: C$1.5913
Canadian Dollar Holds Highs after BOC-Inspired Surge
Following Wednesday’s surprising Bank of Canada (BOC) interest rate hike, the Canadian Dollar surged and pushed GBP/CAD down to its lowest levels since January. Since then, the Canadian Dollar has largely held these highs against Sterling.
The Bank of Canada opted to hike interest rates for the second time in three months due to recent surprisingly strong Canadian growth results, as well as forecasts that inflation in Canada would be strong in the coming year.
Investors weren’t really fazed by Thursday’s disappointing August Ivey PMI either. The PMI slowed from 60 to 56.3 despite being expected to rise to 61.3, but BOC excitement kept the Canadian Dollar in demand.
CAD Outlook: Canada’s Job Market Report in Focus
The Canadian Dollar could dip during Friday’s American session however, depending on the results of August’s highly anticipated Canadian labour market report.
Analysts expect that Canada’s unemployment rate remained at 6.3% in August, while the employment change figure is predicted to have risen from 10.9k to 15k.
Meanwhile, the Pound could be influenced by the day’s UK trade balance or industrial production results from July.
09:30 UK Balance of Trade
09:30 UK Industrial Production and Manufacturing Production
13:30 Canadian Unemployment Rate
09:30 UK Inflation Rate
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