The Pound to Canadian Dollar (GBP/CAD) exchange rate has seen jittery, narrow movement so far this week. Investors are hesitant to move on either currency much, as markets await bigger coronavirus developments both globally and domestically.
Last Week: Sterling Rebound Limited by Lingering Risk-Sentiment
Following weeks of poor performance, the Pound rebounded from lows last week. Investors bought the jittery currency in quarter-end trade, though it was also boosted by speculation that a Brexit breakthrough is possible this month.
Sterling’s gains against the Canadian Dollar were mixed though. The Canadian Dollar is a currency correlated to market risk and trade sentiment.
Lingering hopes for a global economic rebound from the coronavirus pandemic, bolstered by strong US Non-Farm Payroll data, helped the Canadian Dollar to push GBP/CAD back slightly before markets closed.
Three Things to Watch For This Week
- UK Summer Statement
A supplementary Summer Budget for Britain is due to be unveiled tomorrow. If UK Chancellor Rishi Sunak impresses with any new stimulus plans, the Pound could see stronger demand.
- Coronavirus Developments
With more economies reopening but cases surging in some locations, markets will continue to closely watch global and domestic coronavirus developments.
- Canada Job Market Report
Canada’s June job market data will be published on Friday. It will be one of the strongest indicatons yet of the coronavirus pandemic’s impact on Canada’s economic resilience.
Unless the UK Summer Statement or Canada’s job results surprise investors, the Pound to Canadian Dollar exchange rate will continue to be influenced by ongoing uncertainties like coronavirus, Brexit, and oil price shifts.