GBP/CAD Price & Performance (GBPCAD)

The Canadian Dollar faced significant pressure last week as trade tensions with the US escalated. President Trump proposed steep tariffs on Canadian steel and aluminium, prompting a volatile reaction in the currency markets. Although tensions eased slightly, the Canadian Dollar struggled to recover amidst economic uncertainty.1

The Pound showed resilience last week, briefly reaching a near nine-year high against the Canadian Dollar. Despite an unexpected contraction in UK GDP for January, the currency outperformed amidst global trade tensions. Focus now shifts to the Bank of England’s upcoming interest rate decision, which could influence Sterling’s trajectory.1

Upcoming economic data in Canada, including inflation and retail sales figures, could impact the Canadian Dollar. Inflation is expected to rise, potentially reducing the likelihood of further interest rate cuts. However, weak retail sales data might weigh on the currency, as markets assess the Bank of Canada’s cautious policy stance.1