Heading into the second trading day of the week, the Pound to Canadian dollar exchange rate are favouring GBP upside following the released of the UK’s factory output data which displayed a 10-month high. This increase has boosted GBP on the hopes of the post-election rebound or so-called ‘Boris Bounce’ that investors had hoped for is looking likely to hold weight. Meanwhile, the Canadian dollar has once again fallen victim to coronavirus fears. Rising fears came following South Korea’s announcement of a state of emergency, as a result the price of oil sunk, stinging CAD’s strength. Though new cases in the originating province of Hubei in China are in decline, new cases are being confirmed in other provinces, as well as South Korea and even as far as Italy.
GBP pushes higher on improved UK economic outlook
The pound to Canadian dollar exchange rate rose by 0.4% on Sunday, with pair trading at a level of CA$1.715. This landed GBP in good stead to start the week. This came after the release of the UK’s factory output figures. The data released displayed that the UK had shown record highs that hadn’t been seen in 10-months. Investors caught a glimpse of the ‘Boris Bounce’ and has boosted support for GBP following the release as UK business continue to strive forwards into 2020.
CAD falls as oil prices take a hit following Coronavirus resurgence
The coronavirus continues to plummet the Canadian dollar following the recent resurgence which has caused South Korea to issue a state of emergency warning, concerning the number of new cases in the country. As a result of increased fears, the market’s risk appetite has once again muted. This will not be positive news to investors of risk-sensitive currencies like CAD who had been experiencing a relatively quiet week last week on the coronavirus front which allowed the risk appetite to slowly return amongst the market’s investors.
The CAD remained subdued this morning, with the CADGBP Interbank exchange rate trading at around £0.58 while the CADUSD ate dropped by -0.4% and fluctuated around $0.75 as fears spiked. As a result of the fears, USD has once again benefited from investors flocking over to the currency as a safe haven. The Canadian dollar is likely to be dominated by coronavirus headline and should the virus show little signs of improvement, the CAD is expected to slide.
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