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.
09:30 UK Construction PMI (Jan)
09:30 UK Services PMI (Jan)
13:30 CA Trade Balance (Dec)
15:00 CA Ivey PMI (Jan)
08:30 UK Halifax House Price Index (Jan)
12:00 UK BoE Rate Decision
13:30 CA Unemployment Rate (Jan)
13:30 CA Employment Change (Jan)
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Foreign Exchange Manager