Yesterday’s high: C$1.7659
Yesterday’s low: C$1.7364
GBP/CAD Slips Despite Disappointing Canadian Data
Despite a lack of impressive Canadian ecostats in recent weeks, the Pound to Canadian Dollar exchange rate has been unable to advance as Brexit uncertainties and UK growth concerns weigh heavily on the Pound.
GBP/CAD trended over a cent below the week’s opening levels on Friday after EU chief negotiator Michel Barnier expressed uncertainty about Britain’s stances on key Brexit negotiation points. He indicated that if Britain did not agree to certain non-negotiable Brexit terms, it would put a Brexit transitionary deal at risk.
However, the Canadian Dollar failed to capitalise on Sterling’s Friday weakness due to market disappointment with Canada’s latest job market results.
In January, Canada’s key unemployment rate unexpectedly worsened from 5.8% to 5.9%. This was due to a -88k drop in employment. The participation rate also fell to 65.5% despite being predicted to come in at 65.7%.
CAD Outlook: Brexit News Could Keep Pressure on GBP/CAD
Could the Pound to Canadian Dollar exchange rate continue to fall despite poor Canadian ecostats? If next week’s Brexit developments or UK data disappoint it’s entirely possible that GBP/CAD could fall further.
Tuesday will see the publication of Britain’s January inflation results, with the UK’s retail sales report following on Friday. As the Bank of England (BoE) already expects inflation to remain high, a stronger than expected UK inflation report may not have much impact on the Pound outlook. Instead, investors will be focusing on Brexit developments and Britain’s stance on key negotiation issues.
Canada’s economic calendar will be quieter, but the Canadian Dollar could still be influenced by Friday’s manufacturing sales results and shifts in oil prices.
09:30 UK Inflation Rate
13:30 Canadian New Motor Vehicle Sales
13:30 Canadian ADP Employment Change
09:30 UK Retail Sales
13:30 Canadian Manufacturing Sales
13:30 Canadian Foreign Securities Purchases
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