Last week’s high: C$1.7563
Last week’s low: C$1.7227
Sterling Sentiment Suffers as Soft UK Data Causes BoE to Delay Rate Hike
The Pound suffered its fourth consecutive week of losses against the Canadian Dollar during last week’s session, with the pairing’s losses being mostly driven by the Bank of England’s (BoE) latest policy meeting.
The BoE voted 7-2 last week to leave interest rates on hold; a major blow to GBP investors who were certain as late as mid-April that the bank was on track for a rate hike this month.
Meanwhile soaring oil prices helped the Canadian Dollar extend its gains against the Pound last week, although an unexpected contraction in domestic employment last month saw the ‘Loonie’ trim some of these gains at the very end of the week.
CAD Outlook: Will Rising Wages Prompt a Rally in the Pound?
Looking ahead to this week’s session the GBP/CAD exchange rate may look to rally at the start of the week with the release of the UK’s latest employment figures.
Economists forecast that Tuesday’s labour report will reveal that UK wage growth continued to creep higher in March, with analysts optimistic that rising wages will help to fuel a rebound in the UK’s economic growth.
Meanwhile the focus for CAD investors will likely be on Canada’s latest CPI figures, with the Canadian Dollar likely to tick higher at the end of the week if inflation remains robust.
09:30 UK Unemployment Rate (Mar)
09:30 UK Wage Growth (Mar)
01:30 CA Manufacturing Sales (Mar)
13:30 CA ADP Employment Change (Apr)
13:30 CA Inflation Rate (Apr)
13:30 CA Retail Sales (Apr)
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