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GBP/CAD Falls as Hopes Diminish on Cross-Party Brexit Consensus

Last week’s high: $1.7575

Last week’s low: $1.7358

 

Canadian Dollar Rises on Cross-Party Brexit Impasse

The Pound (GBP) began the first half of last week’s session steady against the Canadian Dollar (CAD) despite Tuesday’s disappointing GfK consumer confidence figures for April, which fell below forecast at -13.

Brexit news, too, was in short supply with cross-party talks effectively coming to a standstill as both major parties were unable to find any grounds for compromise.

The Canadian Dollar, meanwhile, failed to benefit from the Governor of the Bank of Canada’s bullishness when he said that interest rates would rise if global political headwinds receded.

Thursday saw the Bank of England hold interest rates at 0.75%, while Mark Carney commented that interest rate hikes could become more frequent should the Brexit impasse be solved.

The Pound Canadian Dollar exchange rate closed to week on a downer, with no notable Brexit developments and local UK elections indicating deteriorating electorate faith in the major parties.

 

CAD Outlook: ‘Loonie’ Could Rise on Improved Unemployment Figures

Pound traders will be looking ahead to Wednesday’s publication of the BRC like-for-like retail sales for April.

On Friday we will see the flash UK GDP figures for the fourth-quarter, and with any improvement, this could see Sterling rise against the Canadian Dollar.

CAD could close the weak higher, however, if there are any signs of improving Canadian unemployment figures for April, which will also be printed on Friday.

 

Key Events

6th May

UK Bank Holiday

18:45 BoC’s Governor Poloz speech

7th May

15:00 Canadian Ivey Purchasing Managers Index (Apr)

8th May

00:01 BRC Like-For-Like Retail Sales (YoY) (Apr)

9th May

13:30 Canadian international Merchandise Trade (Mar)

10th May

09:30 UK Flash GDP (QoQ) (Q1)

13:30 Canadian Unemployment Rate (Apr)

13:30 Canadian Net Change in Employment (Apr)

 

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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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