The Canadian dollar has fared well over the past week, with Thursday reporting back with positive results. Progress in the US-China trade talks are giving a boost to CAD, whilst the relationship with GBP seems on course for a new high since March 2019.
US-China trade deal talks begin to pick up the pace
The ongoing trade deal talks between the United States and China have a lot riding on them, both for the two countries involved but for the whole global economy. Talks appeared to be slow at first, president Trump seemed to be unwilling to meet China’s demands, yet reports from Thursday suggest that he is now willing to listen and cooperate with the Chinese in loosening up on their tariffs.
The optimism in the trade talks has enabled CAD to cling onto its recent positive range and edged higher against USD this Thursday. The current rate is being welcomed as CAD begins to distance itself from its previous 8-day low.
GBP/CAD exchange rate looks promising and on course for a new high
Analysts are reporting that GBP to Cad exchange rate is looking promising. The GBP/CAD outlook turned bullish this Thursday as claims that GBP is aiming higher and has its sights set on a previous high set in March 2019. A target was set by Scotiabank that implied a 5% upside for GBP/CAD rate up ahead. This target could see GBP win first place against its major rivals in 2019.
There are fears however that the December general election is likely to throw a few spanners in the works. Narrowing opinion polls and uncertainty around the election outcome may well scupper GBP. The Pound rose by 4% against the Canadian dollar in the last month, and with the impending general election, an opportunity for progress to be made in the Brexit process and also a chance to bury the chance of a ‘no deal’ Brexit may inspire investors in GBP.
Canada is awaiting it’s employment report for October which is due today (Friday 8th), this is likely to have an effect on CAD and should have an impact on what move the Bank of Canada makes next. Traders will be hoping for a hold or even a potential rise in CAD rate but with optimism pouring into GBP, will it be enough for the Canadian dollar to keep up?
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