Last week’s high: C$1.7794
Last week’s low: C$1.76246
Brexit Concerns Undermine Sterling’s Advance
While the Pound was ultimately able to advance against the Canadian Dollar last week, it suffered some setbacks along the way due to rising Brexit uncertainty.
This was mainly prompted by Theresa May’s rejection of the EU’s draft Brexit agreement, with markets fearing that it could lead to a possible breakdown in talks.
However, Canada’s position as the largest exporter of steel to the US led the Canadian Dollar to experience some sharp losses at the end of the week as Trump announced plans to implement heavy tariffs on all steel and aluminium imports in the US.
CAD Outlook: Canadian Dollar in Focus as all Eyes on BoC
A calendar filled with data releases means it will likely be a busy session for the Canadian Dollar this week, the most important of which is likely to be the Bank of Canada’s (BoC) latest rate decision.
While the bank is not expected to make any changes to its monetary policy this week, with analysts suggesting it is targeting at least one more rate hike this year, markets will be hoping for any signs that may support this.
Meanwhile the UK will publish its latest Services PMI at the start of the week, with the Pound likely to rise if February’s data shows a strong upswing in growth, in the UK’s largest wealth generating sector.
09:30 UK Services PMI Feb
15:00 CA Ivey PMI Feb
13:30 CA Trade Balance Jan
15:00 CA BoC Rate Decision
09:30 UK Trade Balance Jan
09:30 UK Industrial Production Jan
13:30 CA Unemployment Rate Feb
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