The Pound to Canadian Dollar exchange rate surged higher last week as investors struck a bullish tone towards Sterling.
What’s Been Happening: Pound Catapulted to Three-Month High
The Pound flew higher through last week’s session, with investors flocking to the UK currency amidst the broad weakness of its peers.
This uptick in Sterling was aided by the absence of any negative Brexit headlines as well as some end-of-month flows.
The surge in the GBP/CAD exchange rate did face one setback however, with the Pound retreating from its best levels after the UK government announced it would be postponing any further easing of lockdown measures.
The Canadian Dollar, meanwhile, spent most of last week’s session on the defensive, with investors shunning the commodity-linked currency as oil prices crumbled.
However, the ‘Loonie’ was able to rebound from its worst levels at the very end of the week, after Canada’s latest monthly GDP figures printed above expectations.
Three Things to Watch Out for This Week
1. BoE Rate Decision
In the spotlight this week we have the Bank of England’s (BoE) latest rate decision. No policy changes are expected this week, but expect some volatility in the Pound if the BoE makes any mention of negative interest rates.
2. Canadian Jobs Report
Also influencing CAD exchange rates this week will be the publication of Canada’s jobs report. Will another fall in the unemployment rate last month help to buoy the Canadian Dollar?
3. Oil Prices
Also continuing to act as a key catalyst in the ‘Loonie’ this week will be the value of oil. This could see the oil-sensitive currency falter if crude prices remain undermined by fears a coronavirus resurgence could hurt global demand.
The GBP/CAD exchange rate looks likely to face some headwinds this week as the latest BoE rate decision and Canadian jobs figures potentially infuse the pairing with some fresh volatility.