Last week’s high: C$1.6839
Last week’s low: C$1.6623
Pound’s Gains Trimmed by Brexit Uncertainty
While the Pound Canadian Dollar exchange rate initially ticked higher last week, ongoing Brexit jitters kept Sterling restrained.
The pairing surged in first half of the week on the back of Brexit Secretary Dominic Raab’s confidence that the UK could reach a deal with the EU by October, as well as some weaker-than-expected retail sales figures from Canada.
Sterling sentiment then dove in the second half of the session as the government published a paper detailing the impact of a no-deal Brexit, while the ‘Loonie’ was bolstered by an upswing in oil prices, NAFTA developments and hints from Bank of Canada (BOC) Governor Stephen Poloz that rates are likely to continue rising steadily.
However, this wasn’t enough to undo the gains made at the start of the session, leaving the GBP/CAD exchange rate to close the week higher.
CAD Outlook: Canadian GDP Figures to Bolster CAD this Week?
Looking ahead to this week, the Canadian Dollar may look to mount a recovery should Canada’s latest GDP figures show that domestic growth accelerated in the second quarter as some economists forecast.
Meanwhile a lull in data and thin trading after the bank holiday weekend may leave the Pound to struggle this week, especially if Brexit is the only catalyst for movement.
07:00 UK Nationwide House Prices (Aug)
09:30 UK Mortgage Approvals (Jul)
13:30 CA GDP (Q2)
00:01 UK Consumer Confidence (Aug)
13:30 CA PPI (Jul)
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