Yesterday’s high: C$1.6550
Yesterday’s low: C$1.6486
Canadian Dollar Supported by Oil Forecasts
The Pound to Canadian Dollar exchange rate has trended within a narrow range for most of the week. Sterling lacks the drive to march higher due to mixed UK data, while the Canadian Dollar has been held back by low demand for risk-correlated currencies.
Prices of oil, Canada’s most lucrative commodity, increased on Thursday as OPEC raised its forecasts for 2018 crude oil demand. The group suggested that its moves to curb the oil supply glut were having an effect.
However, the ‘Loonie’ failed to capitalise on oil news due to low demand for risky currencies. The past week’s geopolitical tensions between the US and North Korea have left investors more interested in ‘safe haven’ assets instead.
CAD Outlook: July Inflation Results Due Next Week
The Pound to Canadian Dollar exchange rate is likely to continue trending narrowly until geopolitical jitters cool slightly – or until the Pound strengthens.
If next week’s UK inflation or wage growth reports beat expectations, speculation that the Bank of England (BoE) could become more hawkish will flare up again and GBP/CAD will rise.
However, if the ‘safe haven’ rally fades and oil prices remain strong, the Canadian Dollar could hold its ground. Next week’s most notable Canadian data will be July’s inflation report, which comes in next Friday.
09:30 UK Inflation Rate
09:30 UK Job Market Report
13:30 Canadian Inflation Rate
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