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GBP/CAD Sheds Most of Monday’s Gains

Yesterday’s high: C$1.7006

Yesterday’s low: C$1.6885

Commodity Data Supports Risky Currencies

Demand for risky currencies like the Canadian Dollar increased on Tuesday, as prices of key commodities strengthened.

Prices of oil, Canada’s most lucrative commodity, increased in anticipation of a key oil producer meeting due to take place next week. Major oil exporters are expected to extend plans to cut oil production, hoping it will continue to stimulate demand.

The Pound, on the other hand, was limp due to market disappointment in the latest UK public sector net borrowing report. As the UK borrowing deficit was worse-than-expected, investors expect UK Chancellor Philip Hammond won’t have as much wiggle room in Wednesday’s Autumn Budget as previously hoped.

CAD Outlook: UK Autumn Budget in Focus

The Pound’s movement on Wednesday will depend on how UK Chancellor Philip Hammond’s Autumn Budget presentation unfolds.

If Hammond introduces new fiscal policy on infrastructure or something that can take pressure off of domestic consumers, the Pound could climb.

However, if the Budget does not impress, the Pound could extend losses against the Canadian Dollar as the risky currency recovery continues.

Key Events

22nd November

UK Autumn Budget

16:00 Canada Budget Balance

23rd November

09:30 UK Growth Rate

09:30 UK Business Investment

13:30 Canada Retail Sales

24th November

09:30 UK BBC Mortgage Approvals

 

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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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