Yesterday’s high: C$1.7036
Yesterday’s low: C$1.6941
Sterling Pressured by Concerning UK Outlook
The Pound to Canadian Dollar exchange rate fluctuated on Tuesday as Sterling was weakened by the concerning domestic outlook while the Canadian Dollar was influenced by Bank of Canada (BOC) news.
Sterling saw relatively limp trade for most of the day. Investors have been concerned that disagreement about the border between Ireland and Northern Ireland could prevent Brexit negotiations from advancing to trade talks.
Pound traders were also concerned by downgraded UK growth forecasts from the OECD, amid an already gloomy economic outlook for the nation.
In a Tuesday press conference, BOC Governor Stephen Poloz indicated it was too early to tell how Canada’s economy would be affected by recent rate hikes.
CAD Outlook: Brexit Developments in Focus
As the EU gave Britain a 4th December deadline to offer more satisfying proposals for the Brexit divorce settlement, Brexit developments are likely to come into focus again in coming days.
If either side of negotiations indicates it will soften its stance on the Irish border debate, the Pound could rise as investors continue hoping for progress in Brexit talks within the next few months. Rumours that the EU and UK have come to terms over the divorce bill have also proved Pound-supportive.
As for the Canadian Dollar, it could continue to react to Bank of Canada (BOC) news until Friday, when key Canadian growth data and job market stats will be published.
UK GfK Consumer Confidence
07:00 UK Nationwide Housing Prices
13:30 Canadian Current Account
09:30 UK Manufacturing PMI
13:30 Canadian Growth Rate
13:30 Canadian Job Market Report
14:30 Canadian Manufacturing PMI
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