Last week’s high: $1.75123
Last week’s low: $1.71710
Canadian Dollar Remained Sensitive to US-China Trade Developments
The Pound (GBP) began the week subdued on a lack of any signs of a compromise emerging from cross-party talks, and with a lack of economic data, Sterling’s potential for gains remained muted.
Renewed US-China trade tensions, meanwhile, weighed on the Canadian economy, which relies heavily on global trade.
Sterling received some uplift from Tuesday’s 44-year low in the ILO unemployment rate figures for March, which improved on the forecast at 3.8%.
Wednesday, meanwhile, saw Theresa May announce another parliamentary vote on her withdrawal agreement, however this left many Pound traders feeling uncertain as doubts set in whether she would be succeed.
The Canadian Dollar also struggled on Wednesday following the disappointing Bank of Canada CPI figures for April, which eased below the expected 1.8% to 1.5%
The Pound closed the week down against the ‘Loonie’, as cross-party talks between Labour and the Conservatives collapsed, with both leaders effectively blaming the other.
CAD Outlook: Canadian Retail Sales Figures in Focus
Today is Victoria Day in Canada, which means markets are closed.
Many ‘Loonie’ traders will be looking ahead to Wednesday instead, which will see Canadian retail sales figures for March.
Pound investors, meanwhile, will be looking ahead to tomorrow’s inflation report hearings, and with any indications of a weakening UK economy, this could see Sterling sink further.
Brexit developments are going to remain in focus next week, with Theresa May expected to try and gain support for her withdrawal agreement, which will be voted upon in June.
N/A UK Inflation Report Hearings
09:30 UK Retail Price Index (MoM) (Apr)
09:30 UK Producer Price Index Input (MoM) (Apr)
09:30 UK Consumer Price Index (YoY) (Apr)
13:30 Canadian Retail Sales (MoM) (Mar)
13:30 Canadian Wholesale Sales (MoM) (Mar)
09:30 UK Retail Sales ex-Fuel (YoY) (Apr)
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Foreign Exchange Manager