GBP/CAD Trends Lower Despite BoE Hinting at May Rate Hike
Last week’s high: C$1.8407
Last week’s low: C$1.8153
Hawkish BoE Fails to Support GBP
The Pound failed to find any support against the Canadian Dollar last week despite some upbeat UK data and a hawkish outlook following the Bank of England’s latest policy meeting.
While markets welcomed the signals from the bank over the possibility of raising interest rates in May, GBP tumbled as analysts suggested the move had already been priced into Sterling.
Meanwhile the Canadian Dollar advanced last week as the relaxing of US demands in NAFTA renegotiations bolstered optimism that a new deal could be struck.
This left CAD in a position to end the week higher against the Pound following a stronger than expected rise in domestic inflation.
CAD Outlook: UK GDP Figures to Confirm Slowdown in Growth?
Looking ahead to this week’ session the Pound may remain on the back foot as the UK publishes its final GDP reading for the fourth quarter 2017, with UK growth expected have fallen to 0.4% at the end of last year.
Meanwhile a quiet data calendar in Canada is likely to leave the NAFTA renegotiations in focus this week, with some movement at the end of the week possible following the release of Canada’s own GDP figures.
Key Events
26th March
09:30 UK Mortgage Approvals (Feb)
29th March
09:30 UK GDP (Q4)
12:30 CA GDP (Jan)
Alastair Archbold
Currency Trader
Tel: 01442 892 066
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