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Can Sterling Rise Against the Canadian Dollar on Faster GDP Growth?

Last week’s high: C$1.7105

Last week’s low: C$1.6800

High Hopes for Brexit Deal Boosts GBP/CAD Exchange Rate Last Week

The Pound made stop-and-start gains against the Canadian Dollar last week, opening trading at CA$1.6879 and closing higher at CA$1.7041.

A higher UK services PMI provided some support, but the main drivers of GBP demand were signs that the Brexit process could still end with a satisfactory UK-EU deal.

EU Chief Negotiator Michel Barnier played a significant part in Pound Sterling gains, and his remarks were seen as a sign that the Irish border issue could soon be resolved.

CAD Outlook: Chance for GBP Gains on GDP Data and BoE Meeting

There is no notable Canadian data out this week, which leaves UK announcements as the primary influencer of the GBP/CAD exchange rate.

Sterling might be able to make overall gains against the Canadian Dollar; while a larger trade deficit is forecast, decent GDP growth and a faster pace of wage growth is also expected.

The UK jobless rate is tipped to rise on Tuesday, but the Pound could still appreciate if Thursday’s Bank of England (BoE) meeting brings hints of a 2019 interest rate hike.

Key Events

10th September

09:30 UK Balance of Trade

09:30 UK GDP

11th September

09:30 UK Unemployment Rate

09:30 UK Average Earnings

13th September

12:00 UK Bank of England (BoE) Interest Rate Decision

 

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To keep up to date with the Canadian Dollar, visit the CAD blog in our Currency News section.

Alastair Archbold

Currency Dealer

aja@fcgworld.co.uk

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