- GBPCAD fails to hold onto gains following strong GDP figures
- Oil prices edge higher as US stockpiles fall
- Pound Sterling downtrend to continue
Strong GDP figures but Sterling losses continue
The post-Brexit environment is not as bad as many predicted, according to the latest GDP figures for Q3. Markets were expecting a sharp fall to .3% for the months of July to September, but were instead greeted with a moderate .5% growth. Growth YOY was also up 2.3% compared to last year with the Brexit shake-off set to continue.
Despite outperforming market predictions Sterling has rebounded from its day highs of 1.12305 hitting fresh lows of 1.11620, edging closer to its weekly lows of 1.11417. The economic sentiment for the UK remains negative for the remainder of the year with Theresa May set to invoke Article 50 in the coming months. With little economic data for the UK for the remainder of the week the downward trend in my opinion, looks set to continue.
Oil prices rise on low US stockpiles and political turmoil
In the context of GBPCAD further falls are likely given the rebound in oil prices as a result of lower US inventories. The recent fall in oil prices was also triggered yesterday following comments that Iraq, Nigeria and Libya may pull out of any OPEC deal.
Political turmoil in Venezuela, another OPEC nation, has also hit the headlines as protests erupt against the rule of President Nicolas Maduro. The implications of such a political event could impact its oil output pushing up demand elsewhere.
With little economic data for the remainder of the week for the UK and Canada, exchange rates will likely sway on Brexit uncertainty and higher oil prices.