Last week’s high: C$1.7290
Last week’s low: C$1.7061
Pound Struggles to Hold Gains versus Resilient Canadian Dollar
The Pound saw a boost in demand in the middle of last week as investors speculated that the UK and EU could reach some kind of breakthrough on Brexit soon, bolstering hopes that the Brexit process could end with a soft Brexit rather than a No-deal Brexit.
However, the Canadian Dollar has been one of the market’s best-performing major currencies and this meant the Pound to Canadian Dollar exchange rate’s gains were limited.
Throughout the week, rising hopes that the US and China were closing in on a trade deal made investors more willing to take risks, making the relatively risky trade-correlated Canadian Dollar more appealing.
Strong prices in oil, Canada’s most lucrative commodity, further bolstered risk-sentiment.
On top of this, Canada’s December retail sales results beat forecasts on Friday and offered some extra late-week support to the Canadian Dollar.
CAD Outlook: Will Canadian Dollar’s Strong Streak Continue?
While the Pound to Canadian Dollar exchange rate strengthened last week, the Canadian Dollar is still one of the best performing major currencies lately and as that trend could continue.
If prices of oil continue to rise and other factors bolster risk-sentiment, like US-China trade negotiations, the Canadian Dollar could even push GBP/CAD lower again.
Major Canadian data due for publication in the coming week could make the ‘Loonie’ even more appealing if it impresses.
Canadian inflation data from January will be published on Wednesday, with key growth and manufacturing stats due on Friday.
Meanwhile, the Pound could see further pressure if there are no notable Brexit developments as there is just over a month until the formal Brexit date. A major Brexit development could lead to a jump in Pound demand.
09:30 UK Finance Mortgage Approvals
13:30 Canadian Inflation Rate
13:30 Canadian Average Weekly Earnings
00:01 UK GfK Consumer Confidence
13:30 Canadian Current Account
09:30 UK Mortgage Lending and Approvals
09:30 UK Manufacturing PMI
13:30 Canadian Growth Rate
14:30 Canadian Manufacturing PMI
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