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GBP/CAD Exchange Rate Jumps as Brent Crude Strikes One-Year Low

Last week’s high: C$1.7157

Last week’s low: C$1.6787

CAD Laid Low By Rout in Oil Prices

The Pound Canadian Dollar exchange rate roared higher last week, advancing roughly three cents as the oil-sensitive ‘Loonie’ came under considerable pressure amid a rout in oil prices that saw Brent crude strike a new on-year low.

Adding to this pressure was the publication of Canada’s CPI figures on Wednesday which saw inflation slow sharply in November, as well as some weaker-than-expected domestic retail sales figures on Friday.

Meanwhile this weakness in CAD allowed the Pound to accelerate last week despite the Bank of England’s final policy meeting of 2018 resulting in interest rates being left on hold and the BoE downgrading its growth forecast for the fourth quarter.

CAD Outlook: Christmas Period to Prompt Thin Trade in GBP/CAD?

Looking ahead, the absence of any notable economic data and the closure of UK and Canadian markets for Christmas may result in thin trade in the GBP/CAD exchange rate this week.

However with Crude markets remaining open throughout the period, there is a chance that the Canadian Dollar will continue to be met by volatility, especially if the rout in oil prices continues.

Key Events

28th December

09:30 UK Mortgage Approvals (Nov)

 

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To keep up to date with the Canadian Dollar, visit the CAD blog in our Currency News section.

Alastair Archbold
Currency Trader
T: 01442 892 066

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