Last week’s high: C$1.6307
Last week’s low: C$1.6050
Better-Than-Expected Inflation Reading Shores up Canadian Dollar
The mood towards the Canadian Dollar improved as the Canadian consumer price index unexpectedly held steady at 2% in July.
This positive inflation data increases the likelihood of a neutral policy bias from the the Bank of Canada (BOC) in the months ahead.
A surprise uptick in the latest wholesale trade sales figure also offered a boost to CAD exchange rates, with confidence in the economic outlook improving.
Even so, the GBP/CAD exchange rate recovered some of its lost ground ahead of the weekend thanks to a bout of Brexit optimism.
Hopes for a potential breakthrough in the Irish border issue then hoisted the Pound higher against its rival, even as the Canadian Dollar strengthened.
CAD Outlook: Accelerating GDP Forecast to Boost Canadian Dollar
With minimal data available at the start of the week, the GBP/CAD exchange rate could struggle to find any particular direction.
However, Brexit developments could exert an influence, resulting in fresh volatility for the pairing.
Meanwhile, the second quarter Canadian gross domestic product report could encourage the Canadian Dollar to push higher across the board.
Evidence that quarterly economic activity accelerated may fuel investor confidence and see CAD exchange rates strengthen sharply.
If, on the other hand, growth fails to pick up as forecast the GBP/CAD exchange rate could benefit.
00:01 UK GfK Consumer Confidence Index
09:30 UK Mortgage Approvals
13:30 Canada Gross Domestic Product
If you need to make a CAD transfer but don’t have an account with us, click here to get started.