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GBP/CAD Bolstered by Carney Comments

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.

 

Key Events

5th February

09:30 UK Services PMI Jan

6th February

13:30 CA Trade Balance Dec

15:00 CA Ivey PMI

8th February

12:00 UK BoE Rate Decision

9th February

09:30 UK Trade Balance Dec

13:30 CA Unemployment Rate Jan

 

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To keep up to date with the Canadian Dollar, visit the CAD blog in our Currency News section.

 

Alastair Archbold

Currency Trader

01442 892066

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