Last week’s high: C$1.7282
Last week’s low: C$1.7015
Canadian Dollar Investors Relieved Following Poloz Speech
The Pound to Canadian Dollar (GBP/CAD) exchange rate fluctuated for most of last week as a weak Canadian Dollar was unable to capitalise on the Pound’s woes.
Sterling saw support from decent UK data earlier in the week, but towards the weekend Brexit concerns took focus again and investors became anxious that the second phase of Brexit negotiations was unlikely to begin until March 2018. Given that the UK is due to exit the EU in March 2019, some experts fear that this timeframe is unfeasible.
Demand for the Canadian Dollar was limited for most of the week amid mixed Canadian data and market anxiety ahead of a speech from Bank of Canada (BOC) Governor Stephen Poloz on Thursday.
However, while Poloz addressed some concerns during his speech, he indicated that the bank was becoming more confident that economic stimulus was becoming less necessary over time. This led to bets that the BOC would hike Canadian interest rates again relatively soon which boosted the ‘Loonie’.
CAD Outlook: Canadian Inflation and Growth Stats Ahead
Data due in the coming week could improve the Canadian Dollar outlook further, as key growth and inflation results will be published towards the end of the week.
If Canadian data impresses in the coming week, investors may become even more confident that the BOC is planning on continuing its rate hike cycle within the coming months.
UK growth data will be published on Friday too, but and Brexit developments have much more potential to cause movement in the Pound.
11:00 UK CBI Industrial Trends Orders
13:30 Canadian Wholesale Sales
09:30 UK Public Sector Net Borrowing
13:30 Canadian Retail Sales
13:30 Canadian Inflation Rate
09:30 UK Growth Rate
09:30 UK Business Investment
13:30 Canadian Growth Rate
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