Last week’s high: C$1.6481
Last week’s low: C$1.6094
Hopes for Bank of Canada (BoC) Resilience Fails to Keep Canadian Dollar High Versus Sterling
Last week was a heavily bullish one for the Pound to Canadian Dollar exchange rate. Sterling benefitted from relief that Britain was likely not headed for an imminent recession, as well as fresh hopes that the UK government could compromise and agree to a softer Brexit.
The Canadian Dollar has been fairly resilient lately due to hopes that the Bank of Canada (BoC) will avoid taking a dovish stance on monetary policy like other central banks. However, this was not enough to help CAD to avoid losses against a strong GBP throughout the week.
CAD Outlook: Poor Canadian Data Could Send CAD Plunging
The support around the Canadian Dollar could evaporate next week, if upcoming key Canadian data disappoints investors. If Canadian inflation and retail sales stats fall short, Bank of Canada (BoC) interest rate cut bets could revive and CAD could plunge.
Still, the Pound’s recent surge in demand may not last either, as uncertainties in UK politics and Brexit still dominate the GBP outlook. If upcoming developments worsen no-deal Brexit fears or UK data makes the Bank of England (BoE) more concerned about Britain’s economic outlook, the Pound could shed some recent gains.
13:30 Canadian Manufacturing
09:30 UK Inflation Rate
13:30 Canadian Inflation Rate
09:30 UK Retail Sales
12:00 Bank of England (BoE) Policy Decision
13:30 Canadian Retail Sales
If you need to make a CAD transfer but don’t have an account with us, click here to get started.