Last week’s high: C$1.7309
Last week’s low: C$1.7557
CAD Supported by GDP, Manufacturing Data
The Pound climbed against the Canadian Dollar last week as Bank of England (BoE) Governor Mark Carney hinted that in light of the UK’s latest economic performance the bank would be revising up its growth forecasts this year.
However the Pound cooled off a little again as both the UK’s manufacturing and construction PMI’s disappointed in the second half of the week.
At the same time an uptick in Canada’s latest GDP figures and an upbeat manufacturing PMI helped the Canadian Dollar slow the Pound’s advance a little last week.
CAD Outlook: Hawkish BoE to Bolster Sterling?
This week is likely to see the GBP/CAD exchange rate dominated by the BoE’s first policy meeting of the year as markets hope to learn more about the bank’s outlook for the coming year.
Any hint about the possibility of a rate hike in 2018 is likely to prompt the Pound to soar, while a cautious tone from the BoE may drive Sterling lower.
Meanwhile the Canadian Dollar may strengthen if Canada’s trade deficit narrows as expected on Tuesday, although any gains may be short lived if Canada’s employment figures disappoint on Friday.
09:30 UK Services PMI Jan
13:30 CA Trade Balance Dec
15:00 CA Ivey PMI
12:00 UK BoE Rate Decision
09:30 UK Trade Balance Dec
13:30 CA Unemployment Rate Jan
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