Yesterday’s high: C$1.6935
Yesterday’s low: C$1.6860
GBP/CAD Avoids Losses on Poor Canadian Retail Stats
Canada’s economic outlook took a hit on Thursday afternoon, as the nation’s latest retail sales report came in well short of expectations and indicated that growth in Canada was likely to slow towards the end of the year.
September’s Canadian retail sales figures were expected to come in at 0.9%, but only rose to 0.1. The growth was due to higher gasoline prices, but purchases for vehicles and clothing dropped and weighed on results.
As a result of the disappointing report, investors expect that Canadian growth will slow and make it difficult for the Bank of Canada (BOC) to justify another Canadian interest rate hike before the end of the year.
Despite underwhelming UK ecostats on Thursday, GBP/CAD was able to hold its ground due to Canadian Dollar weakness.
CAD Outlook: Brexit to take Focus
With a lack of highly notable ecostats due for most of the coming week, the Pound to Canadian Dollar exchange rate is likely to be driven by political developments and risk-sentiment.
The Canadian Dollar’s retail sales-related losses could be limited if markets remain hungry for risk-correlated currencies, and the Pound is likely to be influenced by any news related to the Brexit process.
Amid hopes that UK-EU Brexit negotiations will see significant progress before the end of the year, Brexit news is likely to take focus once again as December draws near.
09:30 UK BBA Mortgage Approvals
16:00 Canadian Budget Balance
07:00 UK Nationwide Housing Prices
13:30 Canadian PPI
UK Consumer Confidence
13:30 Canadian Current Account
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