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GBP/CAD Exchange Rate Rises as UK PM Granted Brexit Extension

Last week’s high: CA$1.7741

Last week’s low:  CA$1.7438

Canadian Dollar Slumps as Retail Sales Slip for Third Consecutive Month

The Pound (GBP) rose against the Canadian Dollar (CAD) on Tuesday as UK unemployment hit a new 44-year low of 3.9%.

Data also showed that UK wages were growing at their fastest pace in a decade, and real pay rose at the fastest rate since August 2016.

However, Sterling’s gains weren’t to last and the Pound later tumbled on Brexit uncertainty.

Thursday’s Bank of England (BoE) interest rate decision had little impact as all eyes remained on Theresa May, but the Pound began to claw back some losses on the announcement that EU leaders would allow Article 50 to be extended to 12 April.

The ‘Loonie’, meanwhile, came under pressure of its own as Canadian retail sales contracted by -0.3% despite forecasts for a rebound in consumer spending.

CAD Outlook: Weak Canadian GDP to Weigh on CAD?

Brexit is likely to be one of the main catalysts for movement in the Pound Canadian Dollar (GBP/CAD) exchange rate this week, with a third ‘meaningful vote’ due to take place.

If Parliament agrees to Theresa May’s withdrawal agreement the EU leaders will extend Article 50 to 22 May – an outcome which could lend the Pound support.

GBP/CAD could also benefit towards the close of the week if Canadian growth data underperforms again.

Key Events

27th March

12:30   CAD International Merchandise Trade (Jan)

12:30   CAD Exports (Jan)

12:30   CAD Imports (Jan)

29th March

09:30   GBP GDP (Q4)

12:30   CAD GDP (Jan)

12:30   CAD Industrial Product Price (Feb)

12:30   CAD Raw Material Price Index (Feb)

James Spurway

Director Sales and Dealing

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