Friday’s high: C$1.6923
Friday’s low: C$1.6811
Canadian Inflation Report Meets Forecasts
The Pound to Canadian Dollar exchange rate sustained around a cent in gains last week, as Sterling continued to advance while domestic Canadian data failed to boost demand for the ‘Loonie’. Demand for the risky Canadian Dollar was also held back by poor commodity news and US political uncertainties.
Canada’s October Consumer Price Index (CPI) results met expectations in both major prints. The monthly inflation rate slowed to 0.1% as forecast, while the yearly rate slowed to 1.4%.
However, the core yearly inflation rate did rise slightly, from 0.8% to 0.9%, suggesting that underlying inflation trends were strengthening.
Due to market anticipation for Brexit news, Sterling easily gained against a weak Canadian Dollar last week.
CAD Outlook: Brexit and Budget News in Focus
The coming week’s Canadian economic calendar is relatively sparse, so the Pound is likely to take focus in GBP/CAD exchange rate movement.
Investors are likely to digest any of the weekend’s Brexit news for most of Monday’s session, but after that traders will become more focused on the upcoming Autumn Budget.
Britain’s latest public sector net borrowing report will be published on Tuesday and the Autumn Budget will be presented by UK Chancellor Philip Hammond on Wednesday. If the Budget includes any new infrastructure plans, this could give Sterling a boost.
Thursday will see the publication of the week’s most influential data, including UK growth projections and Canada’s September retail sales report.
09:30 UK Public Sector Net Borrowing
13:30 Canadian Wholesale Sales
UK Autumn Budget
16:00 Canadian Budget Balance
09:30 UK Growth Rate
09:30 UK Business Investment
13:30 Canadian Retail Sales
If you need to make a CAD transfer but don’t have an account with us, click here to get started.
T: +44(0)1442 892 060