Last week’s high: C$1.7131
Last week’s low: C$1.6932
GBP/CAD Sees another Week of Losses despite Sterling’s Attempt to Rebound
The Pound put in a stronger performance last week against major currency rivals like the Euro and US Dollar as investors were hesitant to keep selling GBP after its weakness in May.
However, Sterling wasn’t able to advance on a broadly stronger Canadian Dollar.
Throughout the week hopes that trade issues between the US and Mexico could be resolved and some strong Canadian ecostats kept the Canadian Dollar appealing.
Investors were particularly impressed with Friday’s Canadian job market report from May, which showed that Canada’s employment change had unexpectedly printed another strong figure of 27.7k while the key unemployment rate shocked investors with a surprise improvement to 5.4%. This was Canada’s lowest unemployment rate since at least 1976.
The Pound was unable to hold its ground, as while the currency cooled from a month of losses it still remained unappealing due to UK political uncertainties.
CAD Outlook: Politics Take Focus amid Quieter Economic Calendar
Aside from some Canadian housing data, there isn’t much on the economic calendar that is likely to influence Pound to Canadian Dollar exchange rate movement in the coming week. This is likely to leave investors focused on potential political developments and shifts in trade sentiment.
Unless UK growth or production data is particularly surprising, the UK Conservative Party leadership contest is most likely to influence Pound movement throughout the week.
If it perceived as likely that a hard Brexit advocate will succeed Prime Minister Theresa May as the next PM. This is keeping investors anxious, although analysts still believe a softer Brexit is more likely than a no-deal Brexit.
As for the Canadian Dollar, any fresh developments in US trade protectionism, particularly tensions between the US and Mexico, are likely to influence markets.
09:30 UK Trade Balance
09:30 UK Growth Rate
09:30 UK Construction Orders
09:30 UK Manufacturing and Industrial Production
13:15 Canadian Housing Starts
09:30 UK Job Market Report
13:30 Canadian New Housing Price Index
13:30 Canadian New Motor Vehicle Sales
you need to make a CAD transfer but don’t have an account with us, click here to get started.
Foreign Exchange Manager