Last week’s high: C$1.7371
Last week’s low: C$1.6922
GBP/CAD Sheds Gains
The Pound to Canadian Dollar exchange rate recorded notable gains last week as the Pound benefitted from news that the first phase of Brexit negotiations had ended in an exit deal, while the Canadian Dollar was weakened by a cautious tone from the Bank of Canada (BOC).
The BOC remained tight lipped on its plans for monetary policy in 2018 amid mixed Canadian data in recent weeks, which disappointed Canadian Dollar traders and left the currency weaker.
However, Sterling was unable to hold its best levels towards the end of the week due to reports suggesting that the second phase of Brexit negotiations may not begin until February at the earliest.
On Monday, GBP/CAD edged lower as Brexit uncertainty continued weighing on the Pound.
CAD Outlook: UK Data to Drive GBP/CAD This Week
Amid a lack of notable Canadian data, UK data and Brexit developments are most likely to influence GBP/CAD movement this week.
Any news on the second phase of Brexit talks, such as when trade negotiations could begin, is likely to have an impact on Sterling.
On top of that, key UK data due in the coming days could influence the tone the Bank of England (BoE) takes in its policy decision on Thursday.
Tuesday will see the publication of Britain’s November Consumer Price Index (CPI) report. If UK inflation comes in lower than expected, the Pound could drop as investors will become more dovish on BoE rate hike expectations in 2018.
Wednesday’s UK job market data and a speech from Bank of Canada (BOC) Governor Stephen Poloz on Thursday could also influence Pound to Canadian Dollar exchange rate movement.
09:30 UK Inflation Rate
09:30 UK Job Market Report
09:30 UK Jobless Claims
09:30 UK Retail Sales
12:00 Bank of England Policy Decision
13:30 Canadian New Housing Price Index
Bank of Canada Governor Poloz Speech
13:30 Canadian Manufacturing Sales
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