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GBP/CAD Exchange Rate Flat despite Better than Expected Canadian GDP

Last week’s high: CA$1.6838

Last week’s low:  CA$1.6589

Canadian Dollar Muted despite Growth Improvement

At the start of the week the Pound Canadian Dollar (GBP/CAD) exchange rate fell as no-deal Brexit fears continued to weigh on GBP.

On Tuesday, Canadian wholesale sales jumped to a higher-than-forecast 1.7% in April, with sales up in five out of seven subsectors.

This lent some support to the ‘Loonie’.

The Canadian Dollar continued to rise towards the end of the week ahead of Saturday’s Trump-Xi meeting on the side lines of the G20 summit.

Risk-appetite rose on reports that Washington and Beijing made a tentative truce to avert $300 billion worth of additional tariffs on Chinese imports.

However, there was pressure on the US from the Chinese Commerce Ministry to immediately cancel sanctions on the Chinese telecoms giant, Huawei.

On Friday the Canadian Dollar remained muted against the Pound despite Canadian GDP data revealing that the economy expanded in April by a higher-than-forecast 0.3%.

This suggests the recent slowdown is ending as overall growth in March and April was the greatest since December and November 2017.

CAD Outlook: Strong Canadian Unemployment Data to Buoy CAD?

The Canadian Dollar could firm next week if Canada’s manufacturing PMI rises by more-than-forecast in June.

The ‘Loonie’ could also benefit from impressive employment data at the end of the week.

Investors will be looking out for an increase in average earnings.

Meanwhile in the UK we’ve got manufacturing, construction and services PMIs – the Pound could come under further pressure if output eased in June.

Key Events

1st July

09:30   GBP Markit Manufacturing PMI

 

2nd July

09:30   GBP Markit Construction PMI

14:30   CAD Markit Manufacturing PMI

 

3rd July

09:30   GBP Markit Services PMI

 

5th July

13:30   CAD Unemployment Rate

13:30   CAD Net Change in Employment

13:30   CAD Average Hourly Wages

15:00   CAD Ivey PMI

Alastair Archbold
Currency Trader
T: 01442 892 062

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