Last week was one of extreme turbulence for the GBP/CAD exchange rate as Sterling fluctuated from a starting high of 1.8333 to a low of 1.8114. However, the Pound’s fortunes improved as a new week of trading began.
The appeal of the Canadian Dollar, meanwhile, has diminished due to the falling price of crude oil on the WTI index.
GBP Pushed into Uncertainty by Obama Commentary
The Pound’s most recent bout of instability has been in part caused by the entrance of US President Barack Obama into the UK Referendum debate; the President spoke on Friday about the importance of the UK remaining in the EU if a successful trading relationship between the two countries was to stay in place.
As was expected, the ‘Leave’ campaign reacted with vitriol to this apparent interference, with members claiming that Obama had no right to intrude on what was a solely British situation.
Other more recent and less supportive developments for the UK have included claims from ‘Leave’ Co-Chair Michael Gove that the UK could be placed under immense strain by large numbers of migrants entering the UK in the future as countries like Serbia potentially enter the EU.
Additionally, Scotland’s First Minister Nicola Sturgeon has stated that a ‘Brexit’ could lead to another call for a Scottish Referendum on its relationship with the UK.
Domestic data today has included the Confederation of British Industry (CBI) trends for total orders and selling prices, along with business optimism in April. In the former two fields, a positive outcome has been recorded.
Canadian Dollar Slides as Oil Prices and Retail Forecasts Disappoint
In spite of last week’s somewhat positive Canadian inflation results, the ‘Loonie’ has remained down against the Pound and its other peers so far this week.
This is in part due to the price of crude oil per barrel on the WTI index, which has dropped from almost $43.85 to $43.23. On a more helpful note, the price of gold has spiked up to $1234 per 100 ounces.
The most recent developments for the nation outside of commodity prices have included the news that the Liberal Party is set to conduct a cabinet retreat in order to analyse previous responses to policy decisions as well as formulate strategies for the future.
Heads Up
Summary of major upcoming data releases that we think may move the market.