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.
09:30 UK Mortgage Approvals (Nov)
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