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GBP/CAD Exchange Rate Surges on Brexit Optimism

Last week’s high: C$1.7037

Last week’s low: C$1.6661

Pound Soars on Reports of Brexit Progress

The Pound Canadian Dollar exchange rate was left in the doldrums throughout the first half of last week’s session as renewed Brexit uncertainty and stronger-than-expected Canadian GDP figures drove the pairing close to a one-month low

However the second half of the week brought a marked turn around for GBP/CAD, with the pairing rocketing following news that a tentative agreement on financial services had been stuck between the UK and EU and that a broader Brexit agreement could be finalised by the end of November.

Accelerating these gains further was the Bank of England’s latest policy meeting as the bank struck a more hawkish tone on the possibility of further rate hikes next year in the event of a smooth Brexit.

Meanwhile the Canadian Dollar closed out the week with the release of employment figures, but was left muted as oil prices slumped to $72 a barrel.

CAD Outlook: Will UK Growth Have Picked up in Q3?

Looking ahead, the release of the UK’s latest GDP figures is likely to be the highlight of this week’s session, with the Pound potentially strengthening if growth accelerated in the third quarter as some economists suspect.

Meanwhile CAD investors will be focused on a speech by Bank of Canada (BoC) Governor Stephen Poloz at the start of the week, as they look for any signs that his institution could raise interest rates one final time this year.

 

Key Events

5th November

09:30 UK Services PMI (Oct)

12:25 CA BoC Poloz Speech

7th November

15:00 CA Ivey PMI (Oct)

9th November

09:30 UK Trade Balance (Sep)

09:30 UK GDP Estimate (Q3)

 

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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

aja@fcgworld.co.uk

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