The Canadian dollar has retained its title of best performing currency of 2019 as the year came to an end on New Years Eve. The currency previously held the title but was knocked off the top spot by sterling, post-election after a Conservative majority win. But now that it is back in prime position, economists have placed the CAD under scrutiny as they suggest that the currency might well be running out of road against the USD. Meanwhile, GBP has started the new year on the front foot against both the euro and the US dollar as its investors hope that 2020 will be the year that a deal is agreed on for Brexit.
CAD Claims Back Top Spot but Could Be at Risk of Running out of Steam
The Canadian dollar was named the best performing currency of 2019, beating other major rivals like the GBP, AUD, EUR and USD. In Tuesday’s trading session before New Years Day, the CAD was trading higher against the USD but lower against the GBP. The currency has rose against both throughout 2019 however. For the ‘Loonie’ it has gained more than 3% against all major rivals except from the GBP in 2019, at which was still an impressive 1.49% increase. The focus for the CAD going forward will be the rebound of the USD. As economists are suggesting that the CAD’s recent success has been off the back of the USD’s downfall, allowing the Canadian dollar to edge against it. A USD rebound might leave the Canadian dollar with little road left to run on which may have implications for its growth going forward.
GBP Starts off the Year on a Positive Note as It Edges Over EUR and USD
The pound has kicked off the New Year on the right foot as it finished up trading on Tuesday with gains against both the euro and the US dollar. Economists are suggesting that for the GBP, it will be unlikely to shift heavily in the upcoming weeks until the market gauges the direction that the UK economy will head towards in the trade front. The UK is expecting its December manufacturing PMI data this Thursday however which will likely cause some movement in the currency. Sterling investors will turn their attention to this data in hopes of a rally on positive data.
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