Last week’s high: CA$1.7485
Last week’s low: CA$1.7008
Canadian Dollar Takes Advantage of a Weak Sterling Despite Stagnating Sales
The Pound Sterling Canadian Dollar (GBP/CAD) exchange rate slid last week as less-than-inspiring UK data weighed on GBP and a recovery in oil prices boosted the Canadian Dollar.
The Canadian Dollar retained gains against the Pound despite Canada’s Markit manufacturing PMI falling from 54.9 to 53.6 in December.
Christian Buhagiar, President and CEO at SCMA noted that:
‘December data signaled a loss of momentum for manufacturers at the end of the year, with stagnating export sales and softer energy sector demand the key factors behind an overall slowdown in production growth Survey respondents also commented that global trade tensions has led to greater risk aversion among clients. As a result, manufacturing companies have curtailed their expectations for output growth in 2019, with business optimism easing to its lowest for almost three years.’
And the GBP/CAD exchange rate extended losses before the weekend as Canada’s employment figures impressed, with the nation adding more positions than expected and the unemployment rate holding steady despite being forecast to increase.
CAD Outlook: Can Strong Canadian Data Boost CAD Further this Week?
Canada’s Ivey PMI for December is due for release today and could see the GBP/CAD exchange rate dip further if the figure increases from the previous 57.3.
Wednesday will see the Bank of Canada deliver its first interest rate decision of 2019. While no rate change is expected, an unexpected hike could send the Canadian Dollar soaring.
At the close of this week we have the UK’s Gross Domestic Product data. It would take a surprisingly strong growth figure to help GBP/CAD claw back losses.
15:00 CAD Ivey Purchasing Managers Index (Dec)
08:30 GBP Halifax House Prices (Nov)
13:30 CAD International Merchandise Trade (Nov)
n/a GBP NIESR GDP Estimate (Dec)
13:15 CAD Housing Starts (Dec)
15:00 CAD BoC Interest Rate Decision
15:30 GBP BoE Governor Carney Speech
00:01 GBP BRC Like-For-Like Retail Sales (Dec)
13:30 CAD New Housing Price Index (Nov)
09:30 GBP Gross Domestic Product (Nov)
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Foreign Exchange Manager