Around lunch time today the latest important economic data will be released for Canada and could cause volatility for the exchange rate. The Bank of Canada have twice raised interest rates this year and that’s with Canadian inflation not moving too much. If there is some movement upwards for inflation then there could well be scope for further rate hikes as early as this year. The CAD has been the strongest performing currency of all the G20 countries and this could continue.

Retail Sales Index and Consumer Price Index are some of the most significant releases as the demonstrate how the economy in question is performing. The GBP/CAD rate had been falling until last week with events only changing once the Bank of England proposed future rate hikes in the UK. In the short term the GBP/CAD rate is unlikely to pick up too much in the future, however there could be movements back to the 1.60 level if the data is strong.

Theresa May’s Brexit speech to rattle markets

Theresa May will speak later today and is thought to be delivering an update on the Brexit talks. There are rumours that Prime Minister May will announce how much the UK are prepared to offer to the EU to settle any future commitments over the next few years. The figure is thought to be around £20bn but it is yet to be seen if that will be excepted by the EU.

If it is good news for Brexit talks then there could be an immediate boost for Sterling, however bad news could obviously cause a drop. The GBP/CAD rate along with many currency pairs could have volatile days today, especially if there is big news.