Last week’s high: $1.7784
Last week’s low: $1.7451
Canadian Dollar Rises as Brexit Gloom Weighs on Pound
The Pound Canadian Dollar exchange rate fluctuated wildly last week as Brexit took several turns, with MPs rejecting all eight ‘indicative votes’ while Prime Minister Theresa May’s deal was split in two.
The first half of the session saw the Pound weaken after MPs continued to pile on pressure for Mrs May to resign. Doubts also rose over whether a third ‘meaningful vote’ would even go ahead, as House Speaker John Bercow urged for ‘substantial changes’ that were not forthcoming.
Tuesday, meanwhile, saw the Chair of the European Research Group (ERG), Jacob Rees-Mogg effectively admit he would back May’s deal, which saw some of the gloom around a third vote diminish, as the ERG generally holds sway in its success.
Wednesday, meanwhile, saw the export-reliant Canadian economy take a hit from the publication of the international merchandise trade figures for January, which slipped to CA$-4.25bn.
The second half of the week saw eight parliamentary ‘indicative votes’ with MPs voting down all of the options available. This then led to Theresa May dividing her deal in half for a vote on Friday.
The former Foreign Secretary, Boris Johnson, then announced his support – although the DUP remained resilient, saying it would vote against May’s deal.
The pairing closed the week with the Pound down against the ‘Loonie’ as May’s Brexit deal was rejected by a majority of 58. May described the outcome as ‘grave’, adding, ‘I fear we are reaching the limits of the process of this house.’
CAD Outlook: Canadian Manufacturing PMI Figures Could Provide Uplift for ‘Loonie’
Looking ahead to the week ahead, Brexit once again is to remain in the spotlight as the clock ticks ever close to the UK’s 12 April leaving date.
May has stated that she will press forward for an orderly deal, however Sterling traders will most likely be looking for signs of a possible extension of Article 50.
Any signs that the EU are unwilling to extend the Brexit process would see the Pound plummet as the UK would likely face a no-deal exit.
Canadian Dollar traders, meanwhile, will be looking ahead to Monday next week which will see the publication of the Canadian Markit Manufacturing PMI figures, which are expected to improve.
08:30 UK Markit Manufacturing PMI (Mar)
13:30 Canadian Markit Manufacturing PMI (Mar)
08:30 Markit Construction PMI (Mar)
08:30 UK Markit Services PMI (Mar)
14:00 Canadian Ivey Purchasing Managers Index (Mar)
12:30 Canadian Unemployment Rate (Mar
12:30 Canadian Participation Rate (Mar)
12:30 Average Hourly Wages (YoY) (Mar)
12:30 Canadian Net Change in Employment (Mar)
yiu need to make a CAD transfer but don’t have an account with us, click here to get started.
Foreign Exchange Manager