GBP/EUR: Will UK Manufacturing & Industrial Production Drag Pound Lowe

The dollar pushed higher versus the Canadian dollar on Monday, extending gains from the previous week. However, gains were capped by rising oil prices. The US dollar Canadian dollar exchange rate advanced 0.1%, closing close to the key support of 1.3150. The pair is trading flat in early trade on Tuesday.

Weak US macro-economic data weighed on demand for the dollar in early trade yesterday. Data showed that US factory orders declined -0.6% month on month in September; the biggest decline in four months. The figures confirmed the ongoing weakness in the US manufacturing sector amid the US — China trade dispute.

Whilst the numbers were disappointing, they come at a time when the US — China trade war could be thawing. US Commerce Secretary Wilbur Ross said over the weekend that he was quite optimistic that the last few obstacles before the first phase trade deal could be signed would soon be overcome.

The US dollar found demand in the US trading after, after trade deal optimism sent the US stock market to a record high, boosting demand for t he American currency at the same time.

Today investors will look towards US ISM non-manufacturing data which could lift the dollar. Analysts are expecting activity in the sector to have picked up. This would ease fears that he US manufacturing slump in spilling into the consumer sector.

Oil Jump Keeps Canadian Dollar Buoyant

Strength in the Canadian dollar kept limits on the US dollar rally. The Canadian dollar remained buoyant in the previous session thanks to higher oil prices.

The Iranian oil minister Bijan Zanganeh told reporters on Monday that he believed that the Organisation of Petroleum Exporting Countries (OPEC) would agree to further reduce oil production when they meet in December. This prospect of tighter supply boosted the price of oil, as did the encouraging trade dispute headlines. West Texas Intermediate rallied to a 6-week high of $57.43.

The price of oil impacts the value of the Canadian dollar because when oil prices are high, the amount of US dollars Canada earns on each barrel of oil it exports will be high.

There is no high impact Canadian data for investors to focus on today, meaning US data and US — Sino trade headlines are most likely to drive the pair. 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