Yesterday’s high: C$1.6987
Yesterday’s low: C$1.6905
Canadian Dollar Remains Weak on Canadian Growth Outlook
Thursday’s Canadian retail sales stats left an impression on Canadian Dollar traders and since then the Pound to Canadian Dollar exchange rate has had an easier time holding its gains.
Canada’s September retail sales report was forecast to improve from -0.3% to 0.9% month-on-month, but instead rose from a revised -0.1% to just 0.1%. The slow retail activity was due to weaker demand for vehicles and clothes, while gasoline saw stronger growth. The yearly retail report dropped from 7.1% to 6.2%.
This caused markets to become concerned that Canadian growth trends were slowing, and remaining hopes that the Bank of Canada (BOC) would hike interest rates again before the end of the year faded. Sterling was able to easily capitalise on Canadian Dollar weakness thanks to optimism that Brexit negotiations could see major progress in the coming months.
CAD Outlook: Key Canadian Growth Data Ahead
Most of next week’s economic calendar will be relatively quiet for Pound and Canadian Dollar traders, but Canadian data due next Friday has the potential to cause notable ‘Loonie’ movement.
Friday will see the publication of Canada’s Q3 and September Gross Domestic Product (GDP) results, as well as job market data from November. If the growth data beats expectations, it could boost the Canadian Dollar.
A Tuesday press conference from the Bank of Canada (BOC) could also cause significant Canadian Dollar movement if the bank discusses 2018 monetary policy.
Sterling investors are likely to focus increasingly on the Brexit process as the end of the year draws closer and markets hope for negotiations to accelerate in December.
07:00 UK Nationwide Housing Prices
13:30 Canadian PPI
15:30 Bank of Canada Financial System Review
16:30 Bank of Canada Press Conference
UK GfK Consumer Confidence
13:30 Canadian Current Account
09:30 UK Manufacturing PMI
13:30 Canadian Growth Rate
13:30 Canadian Job Market Report
14:30 Canadian Manufacturing PMI
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