Canadian retail sales numbers released earlier today arrived stronger than expected showing a resilient economy which should help the Canadian dollar going forward.
Friday however should make for an interesting end to the week with Consumer Price Index inflation numbers. Any rise in inflation could see the Canadian dollar make gains although they may be somewhat limited as a result of the recent wobble in the price of oil. Oil prices have seen a slip Which has seen the Canadian dollar marginally soften. The dollar is impacted heavily by fluctuations in the price of oil as Canada is a net exporter of oil. Any rise in the price of oil is generally seen as good for the Canadian dollar.
UK inflation data released earlier today saw some mixed signals with Consumer Price Inflation rising more than expected which helped push the pound higher against the Canadian dollar. Prices at the production level actually falling which paints a less clear picture.
In the UK it is politics and the Brexit which continue to be the main driver for GBP CAD exchange rates. With a date now set for Article 50 to be invoked next Wednesday 29thy March there is likely to be major volatility around this time. This has never been done before in that no country has ever left the European Union so of course there are some major question marks over any final outcome and it is this uncertainty which has continued to help keep the pound weak.
Today also marked the first day of the Scottish parliament meeting where MSP’s will vote on whether Scotland will request a second independence vote. This too could create considerable volatility for GBP CAD after the vote is held tomorrow.
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