This week there is a couple of minor releases from Canada on Friday however very little in the form of official data. Alternatively for Sterling there is an enormous amount of data so expect the rates to jump around this week.
Tomorrow for Sterling the Consumer, Retail and Producer price indexes will all be released which will show changes in prices from the previous month. The data is expected to show more positivity than negativity, but it’s hard to predict data since the Brexit decision.
There has been good sentiment data in the last few weeks however actual data last week suggested the troubles weren’t over. The data being released currently is being treated as gospel as it is the only real indication of the post referendum climate.
Sterling in the last week has started to gain ground against the Canadian Dollar and this trend could be likely to continue in the near future. In my opinion the pound will strengthen as we move towards the end of the week.
Bank of England interest rate decision on Thursday
On Thursday there will be a Bank of England interest rate decision and this could cause major volatility. There was previous talk that the Monetary Policy Committee could cut interest rates for the second time this year; however that seems unlikely since the UK data started to improve. If there was to be poor data tomorrow there would once more be speculation that a further cut is on the cards.
Oil is also a major factor for the Canadian Dollar and of late there have been some positive talks between Saudi Arabia and Russia. Last week these talks caused the price of a barrel to shoot up $4 and if there was to be an agreement between these two countries then oil could really jump helping the CAD.