GBP/CAD: Loonie Weakens Amid Declining Oil Prices

GBP/CAD bounces back on Tuesday after three bearish sessions in a row. Currently, the pair is trading at 1.7000, up 0.27% as of 10:35 AM UTC.

The sterling recorded dramatic losses up until yesterday as the Bank of England (BoE) policymakers turned dovish one by one. Last Thursday, Governor Mark Carney, who is about to leave the central bank in March, was the first to reveal that the bank might cut the interest rate for the first time since 2016. Two more members of the BoE’s Monetary Policy Committee (MPC) shared similar inclinations.

However, the pound is looking more confident today against the Loonie as the latter is under pressure amid declining oil prices. Both WTI and Brent crude brands have declined to lowest levels since the beginning of December, as the Middle East tensions eased.

During the next three days, investors will be able to analyze the demand outlooks for 2020 from three institutions: OPEC, the International Energy Agency and the Energy Information Administration.

However, the tensions in the Middle East can re-escalate at any moment. Iran is currently struggling with protests at home, after it admitted that it had mistakenly shot down a Ukrainian airliner in Tehran, killing dozens of Iranian citizens.

GBP/CAD’s rebound might be also explained by technical analysis reasons, as the pair couldn’t break a strong support line yesterday.

The Loonie might regain its dominance after a recent survey carried out by the Bank of Canada (BoC) found that businesses had noted an increase in sentiment amid easing global trade conflicts. China and the US should sign the phase one trade deal later this week. Also, the indicators of future sales and employment intentions increased as well. The sentiment rose to 0.74, which is the highest figure since 2018.

The BoC said that the results “suggest that business sentiment is broadly positive except in the Prairies, where indicators remain weak. In aggregate, firms’ outlook is supported by expectations of healthy domestic and foreign sales.” 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.