Last week’s high: C$1.7402
Last week’s low: C$1.7226
Canadian Dollar Bolstered by Rising Oil Prices, Trade Optimism
The Pound Canadian Dollar exchange rate started last week’s session on a fairly stable footing, with Theresa May’s decision to take personal control of Brexit negotiations and renewed confidence that the Bank of England (BoE) will raise interest rates, buoying sentiment in Sterling.
However GBP sentiment began to slip back at the tail end of the week following a major setback in negotiations as the EU’s chief negotiator, Michel Barnier ruled out May’s proposals for a post-Brexit customs deal.
Meanwhile after a slow start to the session, the Canadian Dollar found its feet in the second half of the week as it was lifted by a sizeable jump in oil prices as well as renewed NAFTA optimism.
CAD Outlook: Will a ‘Dovish Hike’ from the BoE Limit Sterling’s Gains?
Looking ahead, movement in the GBP/CAD exchange rate is likely to be dominated by the Bank of England’s rate decision on Thursday.
While analysts are confident that we will see a rate hike in August, its impact on the Pound may prove to be limited, with the possibility of a ‘one-off’ hike likely to dampen any gains in Sterling.
Meanwhile the Canadian Dollar could swing higher in the first half of the week if Canada’s latest GDP report impresses investors.
07:00 UK Nationwide House Prices (Jul)
09:30 UK Mortgage Approvals (Jun)
00:00 UK Consumer Confidence (Jul)
13:30 CA GDP (May)
09:30 UK Manufacturing PMI (Jul)
14:30 CA Manufacturing PMI (Jul)
09:30 UK Construction PMI (Jul)
12:00 UK BoE Rate Decision
09:30 UK Services PMI (Jul)
13:30 CA Trade Balance (Jun)
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