Last week’s high: C$1.7690
Last week’s low: C$1.7330
GBP/CAD Tumbles on Bank of Canada (BoC) Bets and Canadian Growth Support
While some UK growth data did beat expectations last week, the Pound was ultimately unable to hold any recovery against a resurgent Canadian Dollar, and the Pound to Canadian Dollar exchange rate ended the week near its worst levels in a fortnight.
In the middle of the week, the Canadian Dollar was spurred higher by surging oil prices. Higher risk-sentiment and oil were, in the end, the primary causes of GBP/CAD losses throughout the week.
The Pound briefly mounted a recovery attempt on Friday when Britain’s quarter-on-quarter Q1 growth results beat forecasts. However, as Canada’s economy had also grown at a faster than expected pace in April the GBP/CAD rise was cut short and the pair ended up trending near its weekly lows.
CAD Outlook: PMIs and Canadian Job Market Stats Ahead
With key UK data due for publication throughout the first half of next week, the Pound is more likely to drive GBP/CAD exchange rate in the coming sessions.
Markit’s June UK PMIs will be published from Monday through Wednesday, with the key services and composite prints coming in on Wednesday morning. As services make up a notable chunk of Britain’s economic activity, this report could give investors a better idea of how Britain’s economy performed in the last month and could even impact Bank of England (BoE) interest rate hike bets.
However, the Canadian Dollar could keep pressure on Sterling throughout the week if oil prices remain strong and risk-sentiment continues to improve.
Most of the week’s most influential Canadian ecostats will be published on Friday. Canada’s trade balance results could indicate how much the nation has been impacted by US trade protectionism so far, and Canada’s job market data could also prove influential.
09:30 UK Manufacturing PMI
09:30 UK Construction PMI
14:30 Canadian Manufacturing PMI
09:30 UK Services PMI
13:30 Canadian Balance of Trade
13:30 Canadian Job Market Report
15:00 Canadian Ivey PMI
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