GBP/CAD has continued its downtrend that started on Monday, as the Canadian dollar looks confident amid improved business sentiment, even though the nation is now more divided after the national election.

The pair has lost 0.09% so far today, to 1.6835 as of 10.00 AM UTC. The price rallied from October 10 to the end of last week, starting at 1.6264. However, after Canadian Prime Minister Justin Trudeau was re-elected, the CAD has become stronger, even though Trudeau’s Liberal Party has lost many seats and can form a minority government only.

Bank of Canada Won’t Touch Interest Rates

Yesterday, the Bank of Canada (BoC) presented its Business Outlook Survey, hinting that it wouldn’t cut interest rates. The central bank noted an improved business sentiment in Canada, despite worries about a potential recession in the US economy and the ongoing Sino-US trade conflict.

The survey is made up of multiple interviews with key executives at about 100 key Canadian businesses. The report helps analysts understand how the BoC perceives economic data.

Based on the latest report, economists concluded that the central bank wouldn’t change the rates later this month. For the Canadian dollar, this is a bullish signal, as lower interest rates make the national currency less attractive for deposits.

Nathan Janzen, a senior economist at the Royal Bank of Canada (RBC), told the media:

“[The outlook] was kind of surprisingly positive, or maybe surprisingly not all that negative. I think if you look at all these indicators, they’re pretty constructive for the Canadian outlook.”

Earlier on Tuesday, Statistics Canada published retail sales data for August. The indicator fell 0.1% over the month, to $51.5 billion, with price reductions driving the unexpected decline. Analysts polled by Refinitiv expected an increase in retail sales of 0.4%.

UK PM Forced to Delay Brexit

In the UK, Prime Minister Boris Johnson is forced to be ready for another extension, as the House of Commons speaker yesterday rejected another “yes or no” vote. Johnson has to pass the so-called Withdrawal Agreement Bill through both chambers of the parliament.

The good news is that the House of Commons backed the Brexit bill for the first time since the referendum, but there is a long way until the final verdict. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.