Last week’s high: C$1.6679
Last week’s low: C$1.6421
Pound Jumps on Fresh Brexit Optimism
The Pound to Canadian Dollar exchange rate traded in a wide range last week, but ultimately closed the session higher on the back of renewed Brexit optimism.
This came in the wake of an interview with EU Commission President, Jean-Claude Juncker in which he suggested ‘I think we can have a deal’ in place by 31 October.
This was a far cry from comments Juncker made earlier in the week, in which he cast doubts on the progress of Brexit talks and a weak Sterling.
For CAD investors, the week was dominated by a spike in oil prices, with Brent crude climbing as high as $69 a barrel at the start of the session, boosting demand for the oil-sensitive ‘Loonie’.
However the Canadian Dollar failed to sustain these gains through the second half of the week as the oil rally faded and domestic inflation came in below expectations.
CAD Outlook: Brexit Headlines to Remain in Focus?
Looking ahead, in the absence of any notable economic data, the Pound is likely to be driven by Brexit sentiment.
This could see Sterling extend its gains if Brexit news remains broadly positive.
Meanwhile, CAD investors are likely to continue to pay close attention to oil prices over the coming week, could we see another price spike if tensions in the Middle East continue to flare?
11:00 GBP CBI Industrial Orders (Sep)
09:30 GBP Public Sector Borrowing (Aug)
09:30 GBP Mortgage Approvals (Aug)
11:00 GBP CBI Distributive Trades (Sep)
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