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GBP/CAD Rate could Dip on Slowing UK Services Sector

Last Week’s high: C$1.7463

Last Week’s low: C$1.6921

High Hopes for Brexit Breakthrough sent GBP/CAD Rate Soaring

While GBP/CAD declined sharply at the end of the week, the pairing had previously been riding high on growing hopes of a breakthrough in Brexit negotiations.

OPEC oil producers agreed to extend production cuts last week, which bumped up prices and led to a late-week Canadian Dollar advance.

CAD Outlook: Major UK Services Reading Set for Slowdown

Key UK data releases this week will be Tuesday’s services PMI, along with Friday’s trade balance reading.

The services reading is tipped to show a decline in output, a result that could weigh on Sterling, while the trade figures are forecast to show a narrowing in the deficit.

Canadian trade balance stats are also due out this week and are expected to show an expansion of the deficit.

The other headline news is the Bank of Canada (BOC) interest rate decision, which will take place on Wednesday.

BOC officials aren’t expected to change interest rates, but any forward guidance about possible 2018 rate hikes could cause CAD volatility.

Key Events

December 5th

09:30 UK Services PMI

13:30 CA Trade Balance

December 6th

15:00 CA Bank of Canada Interest Rate Decision

December 8th

09:30 UK Trade Balance

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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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