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GBP/CAD Nosedives on Fears a ‘No-deal’ Brexit is Inevitable

Last week’s high: C$1.6924

Last week’s low: C$1.7226

Pound Bombs as Brexit Uncertainty Grows

The Pound Canadian Dollar exchange rate suffered its fifth consecutive week of losses last week as Sterling was met by a heavy sell-off following suggestions the UK could be headed towards a ‘no-deal’ Brexit.

Not even a rebound in the UK’s second quarter GDP managed to revive GBP last week, leaving the GBP/CAD exchange rate to close the session at a nine-month low.

Meanwhile the Canadian Dollar struggled at the start of last week as a spat with Saudi Arabia over human rights saw the Saudi government freeze all trade with Canada.

However this took a back seat in the latter half of the week as the ‘Loonie’ surged following stronger-than-expected employment growth, which saw Canada’s unemployment rate fall to 5.8% in June.

CAD Outlook: Rebound in Sterling Reliant Upon Strong Inflation, Wage Growth Figures

Looking ahead to this week, Sterling investors are likely to pin their hopes on a solid rise in the UK’s latest inflation and wage growth figures helping to assist in a recovery for the Pound.

However, with Brexit likely to continue to dominate headlines, any upside to the GBP/CAD exchange rate is likely to remain limited.

Meanwhile the Canadian Dollar may cede some ground next week with the release of Canada’s latest CPI figures, with economists forecasting inflation will have slowed in July.

Key Events

14th August

09:30 UK Unemployment Rate (Jun)

09:30 UK Wage Growth (Jun)

15th August

09:30 UK Inflation Rate (Jul)

14:15 US Industrial Production (Jul)

16th August

09:30 UK Retail Sales (Jul)

13:30 CA ADP Employment Change (Jul)

17th August

13:30 CA Inflation Rate (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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