You've landed on our UK website.
Click here to visit our USA website.

If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

Sterling struggles on Brexit news, but GBP/CAD jumps

business-articlesSterling struggles on Brexit news, but GBP/CAD jumps
  • Pound flounders on Brexit uncertainty
  • US dollar supported by jobs data, Eurozone GDP ahead
  • CAD plummets after BoC decision
GBP exchange rates pressured lower by rumoured cabinet split

The pound remained under pressure on Wednesday as the Irish border issue rumbled on and reports of a split in Theresa May’s cabinet emerged.

Although Sterling managed to avoid recording any steep losses during the European session, demand for the British currency remained limited amid concerns that cabinet members Michael Gove and Boris Johnson are planning a revolt.

Reports indicate that the pair believe May is attempting to push through a soft Brexit, and such discord within the government could prevent a UK divorce deal being reached before next week’s all-important EU summit.
There’s no UK data on the calendar today, so Brexit rumours will remain the main cause of GBP movement in the hours ahead.

USD strengthens on jobs report, Eurozone GDP expected to stand firm

Optimism surrounding President Trump’s tax bill supported the US dollar on Wednesday, with the currency also benefitting from an impressive ADP employment change report.

Although the US economy added fewer positions than in October, the 190k job creation figure was in line with forecasts and bodes well for Friday’s US non-farm payrolls figures.

Today’s US data is rather low-impact, so the US dollar may remain on a firmer footing as we head towards the weekend.

The euro, meanwhile, could strengthen if today’s Eurozone growth data comes in higher-than-forecast.
The data is expected to show annual growth of 2.5% in the third quarter.

ECB President Mario Draghi’s conference in Frankfurt could also inspire euro movement if he offers up any hints on the future path of monetary policy. 

BoC decision leaves Canadian dollar reeling

The Canadian dollar plummeted across the board on Wednesday as the Bank of Canada (BoC) delivered its last interest rate decision of the year.

The central bank left interest rates unchanged and indicated that it isn’t planning to increase borrowing costs again for the foreseeable future.

With the odds of a January rate hike almost halving following the statement, the Canadian dollar posted broad-based losses.

Today’s Canadian building permits report could help the ‘Loonie’ recover losses if it impresses.

Upcoming Data

Thursday, 07 December, 2017

10:00             EUR Eurozone Gross Domestic Product Q3        
13:30             CAD Building Permits              
16:00             EUR Draghi holds conference in Frankfurt   
20:00             USD Consumer Credit            
Philip McHugh

Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.