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Will GBP/CAD Tumble on Slower UK Services Sector?

Last week’s high: C$1.7327

Last week’s low: C$1.7066

Late-Week Gains for GBP/CAD on UK Manufacturing Stats

Last week saw no real shift in the GBP/CAD exchange rate – the Pound opened around C$1.7268 and despite a midweek dip closed trading close to the same level.

A UK manufacturing sector reading for May pushed the Pound higher on Friday, when the PMI rose instead of falling as forecast.

Both the UK and Canada were rocked when the US confirmed that it was slapping 25% tariffs on steel imports from both countries. CAD was the worse-off on this news, with the CAD/GBP exchange rate dropping on fears of an imminent US-Canada trade conflict.

CAD Outlook: Risk of GBP/CAD Losses on UK Services Slump

There could be an early decline in the GBP/CAD exchange rate this week, when May’s UK construction and services PMIs come out.

Both measures of economic activity are tipped to fall; the services PMI is the more important reading so even a higher construction PMI might not prevent GBP losses.

Canadian data will be in focus for the rest of the week – CAD could drop if the Ivey PMI (measuring economic activity) declines and if there is an unexpected rise in May’s unemployment rate reading.

Key Events

4th June

09:30 UK Construction PMI

5th June

09:30 UK Services PMI

6th June

15:00 CA Ivey PMI

8th June

13:30 CA Unemployment Rate

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Alastair Archbold
Currency Trader
T: 01442 892 066

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