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GBP/CAD Exchange Rate Tumbles as No-Deal Risks Rise

Last week’s high: C$1.7489

Last week’s low: C$1.7156

 

Pound Knocked by No-Deal Brexit Fears

The Pound to Canadian Dollar exchange rate fell sharply last week as Sterling reeled due to fears of a no-deal Brexit being reignited after MPs rejected an amendment that sought to extend Article 50.

Placing further pressure on GBP exchange rates at the end of the session was also the release of the UK’s latest manufacturing PMI, which revealed Britain’s factory sector got off to a lacklustre start in 2019.

Meanwhile the Canadian Dollar was given a leg-up last week by a jump in oil prices, which helped to offset the release of some disappointing domestic GDP figures.

 

CAD Outlook: Brexit Uncertainty to Sour BoE Outlook?

Looking ahead, outside of potential Brexit developments, movement in the GBP/CAD exchange rate is likely to driven by the Bank of England’s (BoE) first policy meeting of 2019.

This may see the Pound tumble this week if the uncertainty surrounding Brexit and signs of slowing global growth prompts a more dovish outlook from the bank for the coming year.

Meanwhile CAD investors are likely to be focused on the release of Canada’s latest employment figures, potentially dampening the appeal of the ‘Loonie’ if employment growth remained subdued in January.

 

Key Events

4th February

09:30 UK Construction PMI (Jan)

5th February

09:30 UK Services PMI (Jan)

13:30 CA Trade Balance (Dec)

6th February

15:00 CA Ivey PMI (Jan)

7th February

08:30 UK Halifax House Price Index (Jan)

12:00 UK BoE Rate Decision

8th February

13:30 CA Unemployment Rate (Jan)

13:30 CA Employment Change (Jan)

 

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

 

Alastair Archbold

Foreign Exchange Manager

aja@fcgworld.co.uk

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