Last week’s high: CA$1.7267
Last week’s low: CA$1.6793
Pound Struck Down by Brexit Turmoil
It was a difficult week for the Pound last week as Brexit turmoil threatened to spin out of control, sending Sterling sharply lower against CAD on Thursday following the resignation of two senior ministers. Intra-week the Pound suffered a 2.7% drop against the Canadian Dollar, although it recovered some of this towards the end of the session.
For the Canadian Dollar, there was also some pressure as oil prices fell sharply, settling on a handle of around $58 for a barrel of WTI crude by Friday. Also on Friday, Canadian manufacturing sales recorded a better-than-expected uptick of 0.2% in September, with the figure having been expected to decline.
CAD Outlook: Brexit Chaos Likely to Continue, Overshadowing Weak Canada Data
Next week is a very quiet one for data releases, but with focus remaining firmly on the political GBP/CAD will undoubtedly be driven by Brexit concerns. These could intensify during the week when the UK government votes on the budget, with possible dissent from the DUP as a proxy for Brexit.
Friday is the big day for Canadian data, with inflation and retail sales results likely to put pressure on CAD, as current forecasts show retail sales and inflation are both expected to move into negative territory.
11:00 UK CBI Industrial Trends Orders (Nov)
09:30 UK Public Sector Borrowing (Sep)
11:00 UK CBI Distributive Trades (Nov)
13:30 CA Core Inflation (Oct)
13:30 CA Retail Sales (Sep)
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