Yesterday’s high: C$1.6735
Yesterday’s low: C$1.6596
UK Political Concerns cause Pound Losses
Investors sold the Pound on Monday, causing the currency to slide against the majors.
Sterling was sold in reaction to weekend reports that a significant number of Conservative MPs have no confidence in UK Prime Minister Theresa May. Investors have become concerned that signs of instability in the UK government could negatively impact the success of Brexit negotiations.
However, demand for the Canadian Dollar has also been limited. While prices of oil, Canada’s most lucrative commodity, have been strong over the last week, ‘Loonie’ investors are waiting for key data due on Friday before they make any big moves on the currency.
CAD Outlook: Inflation Data Ahead
While UK political news is likely to remain a significant source of Sterling volatility, key inflation data scheduled in the coming days will also influence GBP/CAD movement.
Sterling could recover some of its recent losses if Tuesday’s UK inflation report shows an increase in consumer price pressures as it could boost speculation that the Bank of England (BoE) may be pressured to tighten UK monetary policy again sometime in 2018.
Canada’s own inflation report is set for release on Friday. If inflation beats expectations, ‘Loonie’ traders will become more confident that the Bank of Canada (BOC) will continue hiking interest rates and the Canadian Dollar could climb.
09:30 UK Inflation Rate
09:30 UK Job Market Report
09:30 UK Jobless Claims
09:30 UK Retail Sales
13:30 Canadian Manufacturing Sales
13:30 Canadian Inflation Rate
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