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GBP/CAD Exchange Rate Sinks on Brexit Volatility

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.

 

Key Events

20th November

11:00 UK CBI Industrial Trends Orders (Nov)

21st November

09:30 UK Public Sector Borrowing (Sep)

23rd November

11:00 UK CBI Distributive Trades (Nov)

13:30 CA Core Inflation (Oct)

13:30 CA Retail Sales (Sep)

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To keep up to date with the Canadian Dollar, visit the CAD blog in our Currency News section.

 

Alastair Archbold

Currency Trader

T: 01442 892 066

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