Last week’s high: CA$1.7192
Last week’s low: CA$1.6980
Canadian Dollar Rises on Lowered Global Risk Sentiment
Last week saw the Pound Canadian Dollar (GBP/CAD) exchange rate slide, with data showing that UK GDP had hit a six-year low, expanding by only 1.4%.
US-China trade discussions in Beijing began, with the ‘Loonie’ gaining support from President Trump’s comments that the 1 March deadline could ‘slide for a little while.’
The GBP/CAD pairing then rose following the release figures showing Canadian manufacturing activity had slipped for a third consecutive month in December.
Friday saw discussions in Beijing come to a close, although the risk-sensitive CAD was weakened by reports that there were no visible signs of progress.
The end of the session saw the pairing buoyed as UK retail sales exceeded expectations, boasting a yearly increase of 4.2% in January.
CAD Outlook: Will Strong Canadian Retail Sales Boost CAD?
The start of the week is very GBP-heavy, with the Pound likely to rise against the Canadian Dollar if the UK unemployment rate slips to 3.9% as forecast.
Sentiment in Sterling could be dampened slightly by the UK average earnings figures which are forecast to increase at a slower pace of 3.3%.
The end of the week could see an upswing in support for the ‘Loonie’ if December’s Canadian retail sales recover from the previous month’s contraction.
US-China trade talks will continue to cause movement in the pairing, with CAD likely rising if there are signs of Donald Trump extending the 1 March deadline by 60-days.
09:30 GBP ILO Unemployment Rate (3M) (Dec)
09:30 GBP Claimant Count Change (Feb)
09:30 GBP Average Earnings (Dec)
13:30 CAD ADP Employment Change
13:30 CAD Retail Sales (Dec)
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Foreign Exchange Manager