GBP/USD: Dollar Jumps vs Pound Amidst US - China Trade War

The Us dollar Canadian dollar exchange rate snapped a 3-day winning streak on Thursday. Despite broad strength in the US dollar, crude price gaining traction meant that the pair failed to break above 1.32. mark. The Loonie remained resilient versus the dollar with the pair closing lower at 1.3175. The dollar is advancing again in early trade on Friday.

The dollar was in favour across the board on the back of encouraging trade related headlines and as investors look ahead to US consumer sentiment data later today.  Investors are growing increasingly confident that the US and China will sign a trade deal sooner rather than later. A Reuters report said that both President Trump and President Xi would be in London on 3 — 4th December for the NATO meeting, providing an opportunity to sign a phase one deal.

Today investors will continue watching trade headlines closely. Additionally, US consumer sentiment data will also be under the spotlight.  Analysts are predicting that sentiment will hold steady in November at 95.5. A stronger reading could boost he greenback.

Oil Prices Lift “Loonie”

News that the US and China were edging closer to a trade deal boosted the price of oil on Thursday. A Chinese commerce ministry official said that the US and China agreed to gradually roll back the trade tariffs through each new phase of a trade agreement. This was then verified by the US. The news eased concerns of a global economic downturn which would negatively hit demand for oil. As a result, the price of oil jumped over 1.2% I the previous session.

Canadian dollars (versus US dollars) are directly correlated to the price of oil. When the price of oil increases, the value of the Canadian dollar (versus the US dollar increases). Therefore, the rally in the price of oil lifted the Canadian dollar.

Today investors will look towards Canadian labour market report. Analysts expect that 10,000 jobs were created in October, down from the impressive 54,000 last month. The unemployment rate is expected to remain steady at the record low of 5.5%. Investors will be watching closely to see whether the Canadian job market remains robust, particularly after the more dovish than expected BoC. is a news site only and not a currency trading platform. 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.