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GBP/CAD Fails to Capitalise on Softer Canadian Dollar

Yesterday’s high: C$1.6531

Yesterday’s low: C$1.6411

Widening Trade Deficit Dents CAD

Confidence in the Canadian Dollar weakened sharply on the back of a disappointing raft of trade data.

Markets were not impressed to find that the Canadian trade deficit had unexpectedly widened from -2.9 billion to -3.4 billion in August.

Naturally this dented optimism in the outlook of the domestic economy, giving the Bank of Canada (BOC) further reason to leave interest rates on hold in the coming months.

Even though oil prices remained buoyant on the back of the latest comments from OPEC officials this was not enough to particularly boost the Canadian Dollar.

CAD Outlook: Canadian Employment Data in Focus

Further volatility is likely for CAD exchange rates this afternoon, with the release of September’s Canadian labour market data.

Forecasts point towards a more limited uptick in employment on the month, which could keep the Canadian Dollar under pressure.

Unless the labour market shows solid signs of tightening then investors are unlikely to buy back into the ‘Loonie’ ahead of the weekend.

On the other hand, if the unemployment rate shows any improvement this could offer the Canadian Dollar a strong rallying point.

Key Events

6th October

13:30 Canadian Unemployment Rate

13:30 Canadian Net Change in Employment

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

Richard Beaumont

Currency Broker
T: +44(0)1442 892 060

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