The Canadian dollar exchange rates rose against the pound sterling yesterday, as UK markets remained cautious ahead of Thursday’s Bank of England rate cut decision.
Canadian Dollar Shows Signs of Resilience Despite Global Concerns
The Canadian Dollar edged over the pound yesterday as UK markets remained focused on the BoE’s rate decision due on Thursday. CAD has suffered some of its potential gains due to the rising fears over China’s Coronavirus outbreak which has knocked confidence in the risk-sensitive currency. Because of Canada’s economy being particularly reliant on global trade, any threats to China’s economy will weigh on the market appetite for the Canadian dollar.
Friday will see the BoC’s deputy governor Paul Beaudry give a speech, in which any dovish comments about the bank would see the CAD/GBP exchange rate fall. Furthermore, Friday will see the release of November’s Canadian GDP figures which has been predicted to flatten at 0%. As a result, the odds of a BoC rate cut could rise and place further pressure on the CAD.
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