GBPCAD

The latest situation is that optimism is once again on the rise that a deal on the terms of the UK’s departure from the EU is imminent.

Boosted by the oil price rally, the Canadian dollar remains fairly supported despite the Bank of Canada this week reiterating that that it will be cautious with respect to future hikes amid concerns over trade issues.

Super Thursday is here, but will the Bank of England deliver anything noteworthy today?

The GBP/CAD might not be everyone’s cup of tea but this pair will be or remain in focus today as traders respond to economic news from both the UK and Canada.

Today the GBP/USD finally broke the 1.30 handle today following the release of strong UK economic data throughout the week. Whether or not the cable will now be able to climb further higher remains to be seen as the upcoming UK election in June may keep investors on the edge. But the breakout is significant at least from a technical perspective and as a result speculators will be looking across the GBP pairs to find trading opportunities. The GBP/CAD may be a candidate, for there is important data coming up from Canada tomorrow, including CPI and retail sales.

It is not a good day for the British pound or the Canadian dollar. The former is weighed down by a disappointing retail sales figure and on-going Brexit uncertainty, while the latter continues to get hammered after the Bank of Canada’s Stephen Poloz warned of a rate cut amid concerns about Donald Trump’s planned US protectionist policies, which may derail the Canadian economy. The Loonie may come under further pressure if Trump presses ahead with his ambitious and controversial plans. We will have a good idea about that at the inauguration speech later this afternoon.

The Canadian dollar has had an interesting day to say the least. Initially it rallied on the back of stronger oil prices and as the Bank of Canada decided to keep interest rates unchanged. However, despite oil prices extending their gains on the back of a sharper-than-expected US crude inventory reduction, the Canadian dollar slumped as the BoC Governor, Stephen Poloz, said the central bank “actively” discussed the prospects of adding more stimulus into the economy.

This week’s mixed-bag UK economic data has caused the pound to fall against most major currencies, including the Canadian dollar which has managed to perform well recently despite the increased volatility in crude oil prices. The relatively strong performance of the Canadian dollar of late suggests that a bottom in crude is either in place or very close, or that the effects of oil price drops are dissipating. But it could also be due to the non-resources sector of the Canadian economy, which has performed well recently as acknowledged, for example, by the Bank of Canada.