The Canadian Dollar was on course to end the week Friday with gains over a large majority of its nearest rivals including Sterling and may be set to remain a weight on GBP/CAD if the Loonie’s month-long run of underperformance fades with the uncertainty surrounding Monday's election.
The Pound-to-Canadian Dollar exchange rate came off the boil ahead of the weekend after the latest Canadian employment figures spurred the Loonie on in an earlier rebound from prior losses that came alongside gains for other commodity and risk currencies.
The Pound-to-Canadian Dollar rate rose above its breakeven level for 2021 in the penultimate session of the week, placing Sterling back in the top spot among the most frequently traded major currencies for the year owing to a nascent lacklustre performance by the Loonie.
The Canadian Dollar traded with dampened spirit Wednesday after the Bank of Canada noted international headwinds and virus-related risks to Canada’s economic recovery that leave the Loonie with little incentive to reverse its nascent underperformance ahead of October’s forecast review
“Preliminary information indicates an approximate 0.4% decrease in real GDP for July giving back about half of June's gain. The main decreases were in manufacturing, construction and retail trade,” - Statistics Canada.