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GBP/CAD exchange rate Volatile as Brexit, BoE in Spotlight

Last week’s high: C$1.7180

Last week’s low: C$1.6926

Pound Mixed Following Brexit, BoE Developments

The Pound Canadian Dollar exchange rate was hit by some volatility last week as markets reacted to the latest Brexit news, the Bank of England’s latest policy meeting and a marked rise in oil prices.

In terms of Brexit, Sterling found support at the start of the week as the EU’s chief negotiator Michel Barnier appeared positive on the chances of a Brexit deal being reached by November.

These GBP gains were then quickly erased as the oil sensitive ‘Loonie’ was pushed higher by a surge in crude prices in the mid-week.

However, a neutral outlook from the Bank of England (BoE) following its latest policy meeting and a draw back in oil prices from their highs saw the GBP/CAD exchange rate rally once more in the second half of the session, allowing the pairing to close the week up.

CAD Outlook: Robust Inflation to Strengthen CAD this Week?

Looking ahead to this week, the Canadian Dollar may look to strengthen following the publication of Canada’s latest consumer price index, with another robust inflation reading likely to bolster optimism for a rate hike from the Bank of Canada in the foreseeable future.

Meanwhile the release of the UK’s own CPI figures are expected to drag on the Pound this week, with an expected dip in inflation for last month

Key Events

18th September

13:30 CA Manufacturing Sales (Jul)

19th September

09:30 UK Inflation Rate (Aug)

20th September

09:30 UK Retail Sales (Aug)

13:30 CA ADP Employment Change (Aug)

21st September

09:30 UK Public Sector Borrowing (Aug)

11:00 UK CBI Industrial Orders (Sep)

12:00 UK BoE Quarterly Bulletin

13:30 CA Inflation Rate (Aug)

13:30 CA Retail Sales (Jul)

 

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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
T: 01442 892 066

 

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