Last week’s high: C$1.6415
Last week’s low: C$1.6323
Canadian Dollar Continues to Climb Despite Bank of Canada Comments
The GBP/CAD exchange rate spent much of last week trading at some of its worst levels since 2017.
The Pound did derive a bit of support from the Bank of England’s (BoE) latest financial stability report, in which the bank indicated that Britain’s banking and financial systems would survive a no-deal Brexit.
Still, no-deal Brexit fears ultimately prevented Sterling gains.
While the Bank of Canada (BoC) disappointed some investors last week by taking a more cautious tone on monetary policy, it still was less dovish than most major Central Banks.
This, as well as strength in oil prices and a more dovish Federal Reserve, left the trade-correlated Canadian Dollar strong and helped it hit fresh highs.
CAD Outlook: Bank of Canada (BoC) Remains in Focus
The coming week is likely to be another big one for Canadian Dollar investors, as there are multiple major Canadian ecostats due for publication throughout the week.
However, if upcoming Canadian data is particularly disappointing, it could lead to uncertainty over the BoC outlook, which could in turn lead to CAD losses.
Canadian inflation data on Wednesday and retail sales stats on Friday are likely to be particularly influential. If Canadian price pressures were weaker than expected in June, speculation of a BoC rate cut could rise.
The Pound, on the other hand, will become more focused on developments in UK politics and Brexit, as the coming week will be the final full week for the Conservative Party’s leadership contest.
13:30 Canadian New Motor Vehicle Sales
09:30 UK Job Market Report
13:30 Canadian Foreign Securities
09:30 UK Inflation Rate
13:30 Canadian Inflation Rate
13:30 Canadian Manufacturing Sales
09:30 UK Retail Sales
13:30 Canadian ADP Employment Change
09:30 UK Public Sector Net Borrowing
13:30 Canadian Retail Sales
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