Friday’s high: C$1.6035
Friday’s low: C$1.5836
Falling Full-Time Employment Weighed on Canadian Dollar
Although Canadian unemployment fell from 6.3% to 6.2% on Friday, the Canadian Dollar still closed trading down by -1% against the Pound. This was partly because of the fine detail behind the Canadian jobs figures. Participation remained unchanged in August, but full-time employment fell while less-secure part-time positions rose.
The GBP/CAD rise was a two-way event – the Pound had a last-minute rally when a Q3 GDP estimate came in positively. Sterling also built on support which came from better-than-expected manufacturing output stats.
CAD Outlook: UK Inflation and BoE Meeting in Focus
The coming week is not expected to bring much high-impact Canadian news, so UK data is more likely to decide CAD/GBP movement. The first key announcements will be inflation figures on Tuesday and wage growth results on Wednesday. If inflation falls and wages rise then the Pound could appreciate, as this would lessen current UK wage squeeze conditions. The real test, however, will be whether any Bank of England (BoE) policymakers consider raising interest rates during Thursday’s policy meeting. More than two votes for higher interest rates may trigger a GBP/CAD rally.
09:30 UK Inflation Rate
09:30 UK Average Earnings Growth
09:30 UK Unemployment Rate
12:00 UK Bank of England (BoE) Interest Rate Decision
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