Friday’s high: C$1.6799
Friday’s low: C$1.6662
Strong Canadian Employment Change Boosts ‘Loonie’
A solid Canadian job report boosted demand for the Canadian Dollar at the end of the week and pushed GBP/CAD down to weekly lows.
Canada’s participation rate improved from 65.6% to 65.7% in October, which made the unemployment rate worsen from 6.2% to 6.3%. However, the stronger than expected rises in full-time employment and overall employment impressed investors.
Full-time employment rose by 88.7k in October and the overall employment change figure came in at 35.5k, much higher than the forecast 15k.
The Pound was unable to hold its ground, despite the morning’s stronger-than-expected UK services PMI.
CAD Outlook: Brexit Developments Could Strengthen Pound
Next week’s economic calendar will be relatively quiet in terms of data from Britain and Canada, so investors are likely to focus on potential political developments.
With 2017 drawing to a close, the pressure is on for UK-EU negotiations to speed up. Pound investors are hoping the first phase of talks will be concluded before the end of the year so trade talks can begin in earnest.
Upcoming UK data includes September’s trade balance results and manufacturing/industrial production figures – all of which are due out on Friday.
As for Canadian data, we’ve got Monday’s Ivey PMI and housing data in the middle of the week.
15:00 Canadian Ivey PMI
13:15 Canadian Housing Starts
13:30 Canadian New Housing Price Index
09:30 UK Balance of Trade
09:30 UK Manufacturing and Industrial Production
09:30 UK Construction Output
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