Last week’s high: C$1.8041
Last week’s low: C$1.7758
US Trade Tariff Concerns Fuel Movement in CAD
The Canadian Dollar found itself fluctuating against the Pound last week as markets continued to react to Trump’s plans to implement metal tariffs.
With Canada being the largest source of US steel imports, this prompted many investors to shy away from CAD, especially in the wake of the Bank of Canada’s dovish policy meeting on Wednesday.
However the ‘Loonie’ was able to mount a recovery in the second half of the week when Trump announced that both Mexico and Canada would be exempt for metals tarrifs while NAFTA was being renegotiated.
Meanwhile the Pound suffered from further Brexit uncertainty last week, with its gains being undermined by the publication of the EU’s draft guidelines for the second stage of Brexit talks.
CAD Outlook: Brexit Back in Focus for GBP?
It’s set to be a very slow session in terms of UK economic data this week, with only the Chancellor’s spring budget on Tuesday likely to have any real impact.
Outside of this the market focus is likely to return to Brexit, with the Pound potentially suffering if uncertainty continues to dampen sentiment.
Meanwhile the Canadian data calendar looks equally quiet this week, likely leaving the Canadian Dollar vulnerable to movement in oil prices and NAFTA trade talks.
10:00 UK Spring Budget
14:30 CA BoC Poloz Speech
13:30 CA ADP Employment Change (Feb)
12:30 CA Manufacturing Sales (Jan)
Tel: 01442 892 066
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