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Will GBP/CAD Rise Further on Strong Services PMI?

Last week’s high: C$1.6945

Last week’s low: C$1.6600

GBP/CAD Recap: Pound Sterling Boosted by Brexit Optimism

The Pound performed well against the Canadian Dollar last week, rising from an opening exchange rate of C$1.6731 on Monday to close around C$1.6927 on Friday.

This appreciation was triggered by fresh hopes for a functional Brexit deal, fuelled by comments made by EU Chief Negotiator Michel Barnier.

Mr Barnier suggested that the UK could be offered a bespoke Brexit arrangement, but stressed that a bespoke single market deal wasn’t on the table.

Last week was comparatively quiet for Canadian Dollar traders, with CAD being held back by weeklong concerns that Canada could be left out of a revised US-Mexico trade deal.

Weekly GBP/CAD Outlook: Chance for Sterling Rally on PMI Stats

This week could see an extension of last week’s GBP/CAD exchange rate gains, although this largely depends on how UK PMI data turns out.

The main release will be Wednesday’s services PMI – if this shows a significant increase then Pound demand could rise.

GBP/CAD gains may be supported by the week’s Canadian data, as a larger trade deficit, higher unemployment rate and lower Ivey PMI (measuring business activity) are all forecast.

 

Key Events

3rd September

09:30 UK Manufacturing PMI

4th September

09:30 UK Construction PMI

5th September

09:30 UK Services PMI

13:30 CA Trade Balance

15:00 CA Bank of Canada Interest Rate Decision

7th September

13:30 CA Unemployment Rate

15:00 CA Ivey PMI

 

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To keep up to date with the Canadian Dollar, visit the CAD blog in our Currency News section.

 

Alastair Archbold

Currency Trader

aja@fcgworld.co.uk

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